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A Matching Model With Endogenous Skill Requirements>*

Year: 2002

Type: article

Abstract: We consider a labor market in which workers differ in their abilities and jobs differ in their skill requirements. The distribution of worker abilities is exogenous, but we model the choice of skill requirements by firms. High‐skill jobs produce more output than low‐skill jobs, but high‐skill jobs require high‐skill workers and thus are more difficult to fill. We use a matching model together with a Nash bargaining approach to wage setting to determine the equilibrium mix of job types, along with the equilibrium relationship between worker and job characteristics, wages, and unemployment.

Source: International Economic Review

DOI: 10.1111/1468-2354.t01-1-00012

Authors: JAMES ALBRECHT, SUSAN VROMAN

Institution: Georgetown University

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: green

OpenAlex ID: W3023700668

FWCI: 34.24

Cites: 30

Cited by: 364

Related to: 9