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Navarro, Lucas[Labor Market Policies in a Sector Specific Search Model with Heterogeneous Firms and Workers]Labor Market Policies in a Sector Specific Search Model with Heterogeneous Firms and Workers

We show that in a search/matching model with endogenous participation in which workers are heterogeneous with respect to market productivity, satisfying the Hosios rule leads to excessive vacancy creation. The reason is that the marginal worker does not internalize the e§ect of his or her partici...


Navarro, LucasAlbrecht, JamesVroman, Susan[Efficiency in a Search and Matching Model with Endogenous Participation]Efficiency in a Search and Matching Model with Endogenous Participation

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