Publikation: Wage dispersion and labor turnover with adverse selection
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2011
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Carrillo-Tudela, Carlos
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Zusammenfassung
We consider a model of on-the-job search where firms offer long-term wage contracts to workers of different ability. Firms do not observe worker ability upon hiring but learn it gradually over time. With sufficiently strong information frictions, low-wage firms offer separating contracts and hire all types of workers in equilibrium, whereas high-wage firms offer pooling contracts designed to retain high-ability workers only. Low-ability workers have higher turnover rates, they are more often employed in low-wage firms and face an earnings distribution with a higher frictional component. Furthermore, positive sorting obtains in equilibrium.
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330 Wirtschaft
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Adverse selection, on-the-job search, wage dispersion, sorting
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CARRILLO-TUDELA, Carlos, Leo KAAS, 2011. Wage dispersion and labor turnover with adverse selectionBibTex
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