Carrillo-Tudela, C and Kaas, L (2011) Wage Dispersion and Labour Turnover with Adverse Selection. UNSPECIFIED. Working Paper Series of the Department of Economics, University of Konstanz 2011-29..
Carrillo-Tudela, C and Kaas, L (2011) Wage Dispersion and Labour Turnover with Adverse Selection. UNSPECIFIED. Working Paper Series of the Department of Economics, University of Konstanz 2011-29..
Carrillo-Tudela, C and Kaas, L (2011) Wage Dispersion and Labour Turnover with Adverse Selection. UNSPECIFIED. Working Paper Series of the Department of Economics, University of Konstanz 2011-29..
Abstract
We consider a model of on-the-job search where firms offer long-term wage contracts to workers of different ability. Firms do not observe worker ability upon hiring but learn it gradually over time. With sufficiently strong information frictions, low-wage firms offer separating contracts and hire all types of workers in equilibrium, whereas high-wage firms offer pooling contracts designed to retain high-ability workers only. Low-ability workers have higher turnover rates, they are more often employed in low-wage firms and face an earnings distribution with a higher frictional component. Furthermore, positive sorting obtains in equilibrium.
Item Type: | Monograph (UNSPECIFIED) |
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Uncontrolled Keywords: | Adverse Selection; On-the-job Search; Wage Dispersion; Sorting |
Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 03 Jul 2012 15:09 |
Last Modified: | 16 May 2024 18:37 |
URI: | http://repository.essex.ac.uk/id/eprint/2743 |