Two-Sided Search and Temporary Employment

Paolini, D.
(2000)

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  • Paolini, D.
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Abstract
The objective of this paper is to model explicitly the possibility to form temporary matching in a model of two-sided search. The agents (workers and employers) differ by their human quality endowment. In a search equilibrium agents form subintervals and are only matched to agents within their class. The introduction of a temporary market can have a positive impact on unemployment, but it may have a negative impact on low-skilled agents' utility. When a delay cost is introduced, this negative impact can be reduced especially if an education policy is implemented to decrease the heterogeneity of the human capital.
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Citations

Paolini, D. (2000). Two-Sided Search and Temporary Employment (ECON Working Papers 2000/11). https://hdl.handle.net/2078.5/33859