Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099793 | Journal of Economic Dynamics and Control | 2008 | 18 Pages |
Abstract
We provide a matching model where identical workers are embedded in ex ante identical social networks. Job arrival rate is endogenous and wages are bargained. We study the evolution of networks over time and characterize the equilibrium distribution of unemployment rates across networks. Within our framework wage dispersion arises endogenously as the consequence of the dynamics of networks, firms' strategies and wage bargaining. We show that networks induce new search externalities which shape the dynamics of the labor market. Our endogenous framework allows us to quantify these effects.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
François Fontaine,