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Consider a labour market with heterogeneous workers. Firms recruit workers by fixing a hiring standard and a wage offer simultaneously. A more demanding hiring standard necessitates a better wage offer in order to attract enough qualified applicants. As a result, an efficiency wage effect is...
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is more affected by regional unemployment dynamics the greater is the weight of the region in aggregate unemployment rate …
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account for only a very small part of the recent increase in Taiwan's unemployment level. …
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