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This paper reexamines the efficiency of participation with heterogeneous workers in a search-matching model with … bargained wages and free entry. Assuming that firms hire their best applicants, we state that participation is insufficient … receive the entire output. As a consequence, introducing a (small) minimum wage raises participation, job creation, and …
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creation, the introduction of a minimum wage in the formal sector improves the efficiency of the labor market by making the …
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In a circular matching model, firms rank their applicants and pick the best suited one. Job creation appears to lower the average output. As firms do not internalize this effect, jobs are too many in the laissez-faire equilibrium under the Hosios condition. Due to similar externalities firms'...
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We present a model of female participation in the labor force, which deals with part time work and the minimum wage …
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