Selective Hiring and Welfare Analysis in Labor Market Models

Beitrag in einer Fachzeitschrift


Details zur Publikation

Autorinnen und Autoren: Merkl C, van Rens T
Zeitschrift: Labour Economics
Jahr der Veröffentlichung: 2019
ISSN: 0927-5371


Abstract

Firms select not only how many, but also which workers to hire. Yet, in
most labor market models all workers have the same probability of being
hired. We argue that selective hiring crucially affects welfare
analysis. We set up a model that is isomorphic to a search model under
random hiring but allows for selective hiring. With selective hiring,
the positive predictions of the model change very little, but
implications for welfare are different for two reasons. First, a hiring
externality occurs with random but not with selective hiring. Second,
the welfare costs of unemployment are much larger with selective hiring,
because unemployment risk is distributed unequally across workers


FAU-Autorinnen und Autoren / FAU-Herausgeberinnen und Herausgeber

Merkl, Christian Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik


Zusätzliche Organisationseinheit(en)
Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik


Einrichtungen weiterer Autorinnen und Autoren

University of Warwick


Zitierweisen

APA:
Merkl, C., & van Rens, T. (2019). Selective Hiring and Welfare Analysis in Labor Market Models. Labour Economics. https://dx.doi.org/10.1016/j.labeco.2019.01.008

MLA:
Merkl, Christian, and Thijs van Rens. "Selective Hiring and Welfare Analysis in Labor Market Models." Labour Economics (2019).

BibTeX: 

Zuletzt aktualisiert 2019-31-01 um 14:08