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Productivity Investment and Labor Force Participation in Search Equilibrium

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  • Esfahanian , Homa

Abstract

The present paper contributes to the theoretical analysis of the human capital investment and participation decision of heterogeneous workers in the search and matching framework. Its aim is to characterize the equilibrium and to identify the efficiency. Here, the paper studies search equilibrium and matching to consider the participation decision of heterogeneous workers who have different inherent ability levels. The productivity investment decision is endogenous and wages are determined by the Nash bargain among participants.

Suggested Citation

  • Esfahanian , Homa, 2015. "Productivity Investment and Labor Force Participation in Search Equilibrium," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 10(1), pages 23-63, January.
    • Handle: RePEc:mbr:jmonec:v:10:y:2015:i:1:p:23-63
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    References listed on IDEAS

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    More about this item

    Keywords

    Education; ‎Participation‎; ‎Efficiency‎; ‎Hold-up problem;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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