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A labor market with targeted wage offers

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  • Sákovics, József

Abstract

We model a market for highly skilled workers, such as the academic job market. The outputs of firm-worker matches are heterogeneous and common knowledge. Wage setting is synchronous with search: firms simultaneously make one personalized o¤er each to the worker of their choice. With large frictions (delay costs), efficient coordination is not possible, but for small frictions efficient matching with Diamond-type monopsony wages is an equilibrium.

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  • Sákovics, József, 2011. "A labor market with targeted wage offers," SIRE Discussion Papers 2011-52, Scottish Institute for Research in Economics (SIRE).
    • Handle: RePEc:edn:sirdps:285
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