Complementarities and substitutabilities in matching models

Gabriele Cardullo

No 2006001, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

Abstract: This paper describes an equilibrium matching model with two types of workers producing two different intermediate goods. Labour markets are perfectly segmented, but productive complementarities between sectors and productive substitutability within sectors arise. This deeply changes the effects of labour market policies. A welfare analysis is also conducted. Under constant returns to scale in the matcing technology, the so-called Hosios condition is sufficient to guarantee the efficiency of the decentralized equilibrium.

Pages: 19
Date: 2006-01-01
New Economics Papers: this item is included in nep-dge
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Complementarities and Substitutabilities in Matching Models (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvec:2006001

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