This paper studies screening and signaling roles of the offer wage and investigates its impact on matching efficiency. It develops a matching model of a large job market populated by observationally indistinguishable, heterogeneous firms and workers. Heterogeneity is introduced in the simplest...

This paper studies screening and signaling roles of the offer wage and investigates its impact on matching efficiency. It develops a matching model of a large job market populated by observationally indistinguishable, heterogeneous firms and workers. Heterogeneity is introduced in the simplest...

This article investigates signaling and screening roles of wage offers in a single-play matching model with two-sided unobservable characteristics. It generates the following predictions as matching equilibrium outcomes: (i) 'good' jobs offer premia if 'high-quality' worker population is large;...