Equilibrium search model with endogenous growth rate of human capital

Wansheng Tang; Chi Zhou; Chaoqun Xiao; Ruiqing Zhao

Kybernetika (2016)

  • Volume: 52, Issue: 6, page 866-897
  • ISSN: 0023-5954

Abstract

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This article studies an equilibrium search problem when jobs provided by firms can be either unskilled or skilled and when workers differing in their education level can be either low-educated or high-educated. The structure proportion of jobs affects the equilibrium which indicates a threshold that can distinguish whether the equilibrium is separating or cross-skill. In addition, the cross-skill equilibrium solution implies the high-educated workers are more likely to obtain higher pay rates than the low-educated workers with same tenure. Moreover, the profits of the firms decrease as the number of the low-educated workers increases. The most interesting conclusion is that the growth rate of the human capital is an endogenous variable which is different from previous work.

How to cite

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Tang, Wansheng, et al. "Equilibrium search model with endogenous growth rate of human capital." Kybernetika 52.6 (2016): 866-897. <http://eudml.org/doc/287876>.

@article{Tang2016,
abstract = {This article studies an equilibrium search problem when jobs provided by firms can be either unskilled or skilled and when workers differing in their education level can be either low-educated or high-educated. The structure proportion of jobs affects the equilibrium which indicates a threshold that can distinguish whether the equilibrium is separating or cross-skill. In addition, the cross-skill equilibrium solution implies the high-educated workers are more likely to obtain higher pay rates than the low-educated workers with same tenure. Moreover, the profits of the firms decrease as the number of the low-educated workers increases. The most interesting conclusion is that the growth rate of the human capital is an endogenous variable which is different from previous work.},
author = {Tang, Wansheng, Zhou, Chi, Xiao, Chaoqun, Zhao, Ruiqing},
journal = {Kybernetika},
keywords = {dynamic programming; contracts; job search; market equilibrium; human capital},
language = {eng},
number = {6},
pages = {866-897},
publisher = {Institute of Information Theory and Automation AS CR},
title = {Equilibrium search model with endogenous growth rate of human capital},
url = {http://eudml.org/doc/287876},
volume = {52},
year = {2016},
}

TY - JOUR
AU - Tang, Wansheng
AU - Zhou, Chi
AU - Xiao, Chaoqun
AU - Zhao, Ruiqing
TI - Equilibrium search model with endogenous growth rate of human capital
JO - Kybernetika
PY - 2016
PB - Institute of Information Theory and Automation AS CR
VL - 52
IS - 6
SP - 866
EP - 897
AB - This article studies an equilibrium search problem when jobs provided by firms can be either unskilled or skilled and when workers differing in their education level can be either low-educated or high-educated. The structure proportion of jobs affects the equilibrium which indicates a threshold that can distinguish whether the equilibrium is separating or cross-skill. In addition, the cross-skill equilibrium solution implies the high-educated workers are more likely to obtain higher pay rates than the low-educated workers with same tenure. Moreover, the profits of the firms decrease as the number of the low-educated workers increases. The most interesting conclusion is that the growth rate of the human capital is an endogenous variable which is different from previous work.
LA - eng
KW - dynamic programming; contracts; job search; market equilibrium; human capital
UR - http://eudml.org/doc/287876
ER -

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