Search externalities with crowding-out effects

Bruno Decreuse

MPRA Paper from University Library of Munich, Germany

Abstract: We propose a static search model with two types of workers, output sharing (Nash bargaining), and free entry of firms. The matching function is specified so as the unskilled do not create congestion effects for the skilled. An increase in the share of skilled workers has two effects on the welfare of the unskilled: a negative crowding-out effect, and a positive labour demand effect. The former (latter) effect dominates whenever the skill differential is small (large).

Keywords: Matching frictions; Heterogeneity; Congestion effects (search for similar items in EconPapers)
JEL-codes: J21 J23 (search for similar items in EconPapers)
Date: 2008-01
New Economics Papers: this item is included in nep-lab
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https://mpra.ub.uni-muenchen.de/6949/1/MPRA_paper_6949.pdf original version (application/pdf)

Related works:
Journal Article: Search externalities with crowding-out effects (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:6949

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