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Equilibrium in Matching Models with Employment Dependent Productivity

Author

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  • 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

    as
    1. 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.
    2. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x, April.
    3. Acemoglu, Daron, 2001. "Good Jobs versus Bad Jobs," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 1-21, January.
    4. 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.
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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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