Does digitalization increase labor market efficiency? Job search and effort on the job with asymmetric information and firm learning

Karin Mayr-Dorn

No 2019-06, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: This paper analyses the effect of firm learning on labor market efficiency in a frictional labor market with asymmetric information. I consider a model with random matching and wage bargaining a la Pissarides (1985, 2000) where worker ability is unknown to firms at the hiring stage. Firm learning increases relative expected earnings in high-ability jobs and, thereby, enhances imitation incentives of low-ability workers. The net effect on aggregate expected match surplus and unemployment is indeterminate a priori. Numerical results show that firm learning does not increase labor market efficiency.

Keywords: job search; on-the-job effort; asymmetric information; learning. (search for similar items in EconPapers)
JEL-codes: D82 D83 J64 (search for similar items in EconPapers)
Date: 2019-03
New Economics Papers: this item is included in nep-bec, nep-dge and nep-lab
Note: English
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econ.jku.at/papers/2019/wp1906.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jku:econwp:2019_06

Access Statistics for this paper

More papers in Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria Contact information at EDIRC.
Bibliographic data for series maintained by René Böheim ().