Munich Personal RePEc Archive

Demand uncertainty mismatch and (un)employment

Jellal, Mohamed and Thisse, Jacques-François and Zenou, Yves (2005): Demand uncertainty mismatch and (un)employment. Published in: Economic Letters No. 89 (2005) 248–254

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Abstract

Heterogeneous firms facing demand-induced price fluctuations imperfectly compete for heterogeneous workers. It is shown that unemployment may arise in equilibrium because of the combination of uncertainty on product price and mismatch between workers’ skills and firms’ job requirements.

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