IDEAS home Printed from https://ideas.repec.org/a/ier/iecrev/v43y2002i1p173-194.html
   My bibliography  Save this article

On the Informational Content of Wage Offers

Author

Listed:
  • Mehmet Bac

    (Bilkent University, Turkey and Sabanci University, Turkey)

Abstract

This article investigates signaling and screening roles of wage offers in a single-play matching model with two-sided unobservable characteristics. It generates the following predictions as matching equilibrium outcomes: (i) "good" jobs offer premia if "high-quality" worker population is large; (ii) "bad" jobs pay compensating differentials if the proportion of "good" jobs to "low-quality" workers is large; (iii) all firms may offer a pooling wage in markets dominated by "high-quality" workers and firms; or (iv) Gresham's Law prevails: "good" types withdraw if "bad" types dominate the population. The screening/signaling motive thus has the potential of explaining a variety of wage patterns. Copyright 2002 by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Resarch Association

Suggested Citation

  • Mehmet Bac, 2002. "On the Informational Content of Wage Offers," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 173-194, February.
    • Handle: RePEc:ier:iecrev:v:43:y:2002:i:1:p:173-194
    as

    Download full text from publisher

    File URL: http://openurl.ingenta.com/content?genre=article&issn=0020-6598&volume=43&spage=173
    Download Restriction: Free access to full text is restricted to Ingenta subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adam J. Grossberg & Paul Sicilian, 2004. "Legal Minimum Wages and Employment Duration," Southern Economic Journal, John Wiley & Sons, vol. 70(3), pages 631-645, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ier:iecrev:v:43:y:2002:i:1:p:173-194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.