liquidity constraints. The model generates underemployment in equilibrium: workers are employed in jobs for which they are over …-qualified. Subsidizing education can decrease the returns to human capital investment, increase the underemployment rate, and decrease the … rate are inefficiently low. The constrained-efficient allocation is implemented by increasing education subsidies and …

This paper incorporates job search through personal contacts into an equilibrium matching model with a segregated … contacts ; family job search ; social capital ; wages ; equilibrium efficiency …

This paper introduces and examines a definition of an equilibrium rate of unemployment that can be used as mismatch …

rate) in which equilibrium selection is not conditioned on a sunspot. Instead, large enough shocks initiate unavoidable …

We examine wage bargaining when employers and labor unions do not always take all general equilibrium effects into … account but learn a steady state. If agents do hardly consider general equilibrium effects, low real wages and low … unemployment results. With an intermediate view, when partial equilibrium effects are taken into account, high real wages and …

in some cases lead to a Pareto welfare improvement for all agents, through general equilibrium effects, by generating …

shown that the less unemployment insurance is, the more likely equilibrium is to be indeterminate. Equilibrium can be …

construct a general equilibrium model where workers' reservation wages and the maximum punishment acceptable before workers quit … noisy signals, labor market frictions, and the possibility of performance-based pay, analyzing the equilibrium response to … an adverse signal, and establishing conditions under which equilibrium entails lowering wages (performance contracting …

We examine wage bargaining when employers and labor unions do not always take all general equilibrium effects into … account but learn a steady state. If agents do hardly consider general equilibrium effects, low real wages and low … unemployment results. With an intermediate view, when partial equilibrium effects are taken into account, high real wages and …

of all general equilibrium feedback effects. We show analytically that if agents only consider labor demand effects, low … real wages and low unemployment result. With an intermediate view, i.e. when partial equilibrium effects within a sector … are taken into account, high real wages and unemployment result. If all general equilibrium effects are considered at once …