Merkl, Christian; Rens, Thijs van - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2012
distributed unequally across workers. As a result,optimal unemployment insurance may be higher and welfare is lower if hiring is …Firms select not only how many, but also which workers to hire. Yet, in standard searchmodels of the labor market, all … workers have the same probability of being hired. We arguethat selective hiring crucially affects welfare analysis. Our model …