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Equilibrium search model with endogenous growth rate of human capital

Wansheng TangChi ZhouChaoqun XiaoRuiqing Zhao — 2016

Kybernetika

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...

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