On the role of asymmetric information in the aggregate matching function

Koji Yokota
Authors registered in the RePEc Author Service: 横田 宏治

ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) from Otaru University of Commerce

Abstract: When agents in the labour market are fully known, labour matching process is expected to match all agents in the smaller group as the size of the labour market becomes large. Moreover, its convergence occurs fairly quickly. Its implication is that there will be no prolonged unemployment, contradicting the observation. It implies some kind of disruption of perfect information plays a critical role in job matching. The present paper shows that a matching process which arises when there is a cost to collect information about agents exhibits desirable properties that fit data: incomplete matching, emergence of involuntary unemployment, constant returns to scale of matching function, instability of Beveridge curve, and counterclockwise trajectory on the uv plane.

Pages: 30 pages
Date: 2006-04
References: Add references at CitEc
Citations:

Published in Discussion paper series (2006), 98: 1-30

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:ota:busdis:10252/4278

Access Statistics for this paper

More papers in ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) from Otaru University of Commerce Contact information at EDIRC.
Bibliographic data for series maintained by Miura, Chiho ().