Journal
ECONOMICS LETTERS
Volume 106, Issue 1, Pages 48-50Publisher
ELSEVIER SCIENCE SA
DOI: 10.1016/j.econlet.2009.09.022
Keywords
Search; Matching; Efficiency; Participation; Hosios rule
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We show that in a search/matching model with endogenous participation in which workers are heterogeneous with respect to market productivity, satisfying the Hosios rule leads to excessive vacancy creation. (C) 2009 Elsevier B.V. All rights reserved.
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