Two-Sided Search and Temporary Employment

Dimitri Paolini

No 2000011, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: The objective of this paper is to model explicitly the possibility to form temporary matching in a model of two-sided search. The agents (workers and employers) differ by their human quality endowment. In a search equilibrium agents form subintervals and are only matched to agents within their class. The introduction of a temporary market can have a positive impact on unemployment, but it may have a negative impact on low-skilled agents' utility. When a delay cost is introduced, this negative impact can be reduced especially if an education policy is implemented to decrease the heterogeneity of the human capital.

Keywords: Two-Sided Search; Matching; Temporary Employment (search for similar items in EconPapers)
JEL-codes: C78 J41 J64 (search for similar items in EconPapers)
Pages: 25
Date: 2000-05-01
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2000011

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