A Centralized or a Decentralized Labor Market?

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Title: A Centralized or a Decentralized Labor Market?
Author: Virrankoski, Juha
Publisher: Helsinki Center of Economic Research
Date: 2017-11
Language: en
Belongs to series: HECER Discussion Paper No. 421
ISSN: 1795-0562
URI: http://hdl.handle.net/10138/229198
Abstract: I study a dynamic labor market with homogenous firms and workers. Both types of agents choose between a centralized market and a decentralized search market. Firms have free entry and exit. I consider how bargaining and wage posting in the two types of market affect the equilibrium outcome. For example, if there is bargaining in the centralized market and wage posting in the search market, there exists a centralized market equilibrium, a decentralized market equilibrium, and a mixed market equilibrium where there are agents in both submarkets. If wages are posted in both markets, a search market equilibrium does not exist.
Subject: matching
centralized market
decentralized market
labor market

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