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ERIC Number: EJ725303
Record Type: Journal
Publication Date: 2005-Oct-1
Pages: 30
Abstractor: Author
ISBN: N/A
ISSN: ISSN-0022-3808
EISSN: N/A
The Assignment of Workers to Jobs in an Economy with Coordination Frictions
Shimer, Robert
Journal of Political Economy, v113 n5 p996 Oct 2005
This paper studies the assignment of heterogeneous workers to heterogeneous jobs. Owing to the anonymity of a large labor market, workers use mixed strategies when applying for jobs. This randomness generates coordination frictions. Two workers may apply for a particular job, whereas an identical job gets no applications. The model generates assortative matching, with a positive but imperfect correlation between matched workers' and firms' types. It predicts that a worker's wage is increasing in her job's productivity and a firm's profit is increasing in its employees' productivity. The model also yields a version of the welfare theorems.
University of Chicago Press, Journals Division, P.O. Box 37005, Chicago, IL 60637. Tel: 773-753-3347; Web site: http://www.journal.uchicago.edu; e-mail: subscriptions@press.uchicago.edu.
Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A