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Job Queues and Layoffs in Labor Markets with Flexible Wages
Abstract
Models of a heterogeneous labor market are presented in which a worker's acceptance wage is an increasing function of his ability, and in which firms have imprecise information concerning the labor endowment of particular workers.Because the expected labor endowment of a hiree is an increasing function of the firm's wage offer, industrial firms may choose not to lower wages when confronted with a queue of job applicants. Rejected job applicants will not be able to increase their probability of employment by lowering their acceptance wages. Firms may choose to simultaneously hire and fire workers.
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Citations
Cited by
Information and the Change in the Paradigm in Economics
Stiglitz, J. E. (2002) · American Economic Review · doi:10.1257/00028280260136363 · Cited by 1,455
Corporate Governance: Some Theory and Implications
Hart, O. (1995) · The Economic Journal · doi:10.2307/2235027 · Cited by 1,254
Search-Theoretic Models of the Labor Market: A Survey
Rogerson, R., Shimer, R., & Wright, R. (2005) · Journal of Economic Literature · doi:10.1257/002205105775362014 · Cited by 1,051
A simple model of firm heterogeneity, international trade, and wages
Yeaple, S. R. (2005) · Journal of International Economics · doi:10.1016/j.jinteco.2004.01.001 · Cited by 966
Incentive Effects of Terminations: Applications to the Credit and Labor Markets
Stiglitz, J. E., & Weiss, A. (1983) · Columbia University · doi:10.7916/d80k2kjv · Cited by 549
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Metadata
- Authors
- Weiss, A.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 1980-06
- Volume
- 88
- Issue
- 3
- Pages
- 526-538
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W1979358720
- Cited by
- 637
- References
- 0
- FWCI
- 29.74
- Type
- journal article
- Language
- en
- Open access
- closed
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- Weiss, A. (1980). Job Queues and Layoffs in Labor Markets with Flexible Wages. Journal of Political Economy. https://doi.org/10.1086/260884
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