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Equilibrium in Matching Models with Employment Dependent Productivity

Author

Listed:
  • Gabriele Cardullo

    (DIEM, Faculty of Economics, University of Genoa)

Abstract

In a standard search and matching framework, the labor market presents frictions while in the competitive product market the demand is infinitely elastic.To have a more realistic framework, some models abandon the assumption of infinite elasticity and consider a two-tier productive scheme in the goods market. In this paper, I establish the conditions that are sufficient for the existence and the uniqueness of a steady-state equilibrium for this kind of models. I also notice that some standard assumptions about the production and matching technology (a Cobb-Douglas function) do not fulfill such conditions and so may hinder the existence of an equilibrium.

Suggested Citation

  • Gabriele Cardullo, 2009. "Equilibrium in Matching Models with Employment Dependent Productivity," Economics Bulletin, AccessEcon, vol. 29(3), pages 2380-2387.
    • Handle: RePEc:ebl:ecbull:eb-09-00251
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    References listed on IDEAS

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    1. Acemoglu, Daron, 2001. "Good Jobs versus Bad Jobs," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 1-21, January.
    2. Mortensen, Dale T. & Pissarides, Christopher A., 1999. "New developments in models of search in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 39, pages 2567-2627, Elsevier.
    3. Joseph, G. & Pierrard, O. & Sneessens, H. R., 2004. "Job turnover, unemployment and labor market institutions," Labour Economics, Elsevier, vol. 11(4), pages 451-468, August.
    4. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x, December.
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    Cited by:

    1. Navarro, Lucas, 2011. "Efficiency of two sided investments in an equilibrium unemployment framework," Economic Modelling, Elsevier, vol. 28(3), pages 1090-1098, May.
    2. Hannah Sheldon, 2020. "The Beveridge curve and equilibrium unemployment," Economics Bulletin, AccessEcon, vol. 40(4), pages 3182-3192.

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    More about this item

    Keywords

    Unemployment; search-matching equilibrium.;

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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