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Contracts versus Salaries in Matching: A General Result. N.B.: This paper replaces Nr 13.09 "Contracts versus Salaries in Matching: Comment", (June 2013)

Jan Christoph Schlegel

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

Abstract: It is shown that a matching market with contracts may be embedded into a matching market with salaries under weaker assumptions on preferences than substitutability. In particular, the result applies to the recently studied problem of cadet-to-branch matching. As an application of the embedding result, a new class of mechanisms for matching markets with contracts is defined that generalize the firm-proposing deferred acceptance algorithm to the case where firms have unilaterally substitutable preferences.

Keywords: Matching; Matching with contracts; Matching with salaries; Embedding; Substitutes; Unilateral substitutes; Bilateral substitutes (search for similar items in EconPapers)
JEL-codes: C78 (search for similar items in EconPapers)
Pages: 29 pp.
Date: 2014-08
New Economics Papers: this item is included in nep-gth
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