Wage-Directed Job Match with Multiple Applications and Multiple Vacancies: The Optimal Job Application Strategy and Wage Dispersion

Kenjiro Hori

No 711, Birkbeck Working Papers in Economics and Finance from Birkbeck, Department of Economics, Mathematics & Statistics

Abstract: This paper develops a model of directed-search where workers’ preference for a higher wage is explicitly modelled into their application strategy. In a general setting where jobs offer non-uniform wages and different probabilities of a job offer, the optimal strategy for selecting the set of applied jobs is established. In applying this to a homogeneous-workers job-matching market, the equilibrium outcome is then shown to entail wage dispersion when firms have non-uniform labour demand. Finally a matching function is derived that captures both urnball and multiple-applications frictions, that nests many of the existing functions.

JEL-codes: J31 J64 (search for similar items in EconPapers)
Date: 2007-09
New Economics Papers: this item is included in nep-dge and nep-lab
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https://eprints.bbk.ac.uk/id/eprint/26901 First version, 2007 (application/pdf)

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