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

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Skill mismatch, Price uncertainty, Unemployment equilibrium
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity; J - Labor and Demographic Economics > J4 - Particular Labor Markets > J41 - Labor Contracts

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