Munich Personal RePEc Archive

Search externalities with crowding-out effects

Decreuse, Bruno (2008): Search externalities with crowding-out effects.

[thumbnail of MPRA_paper_6949.pdf]

Download (115kB) | Preview


We propose a static search model with two types of workers, output sharing (Nash bargaining), and free entry of firms. The matching function is specified so as the unskilled do not create congestion effects for the skilled. An increase in the share of skilled workers has two effects on the welfare of the unskilled: a negative crowding-out effect, and a positive labour demand effect. The former (latter) effect dominates whenever the skill differential is small (large).

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.