Education, Mobility and Employers' Monopsony Power
A Search-theoretic Analysis
Bibliographic Data
| ID | 19088914 |
|---|---|
| Authors | Bruno Decreuse (corresponding author), Pierre Granier |
| Year | 2005 |
| Volume | 19 |
| Issue | 3 |
| Pages | 531-562 |
| Publication date | 2005-08-31 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | LABOUR (JOURNAL) |
| Journal identifiers | ISSN: 1121-7081 • E-ISSN: 1467-9914 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1467-9914.2005.00310.x |
| OpenAlex | W1965631115 |
| Language | EN |
| References cited | 25 |
We analyse the efficiency of schooling choices in a wage-posting search equilibrium model with on-the-job search. The workers have multidimensional skills and the search market is segmented by technology. Education determines the scope — or adaptability— of individual skills. Individuals obtain schooling to leave unemployment more quickly and to climb the wage ladder rapidly through job-to-job mobility — that is, to speed up job shopping. Education reduces firms’ monopsony power in the wage determination by improving workers’ mobility. As a result, the wage distribution shifts rightward with aggregate schooling. However, the ratio of vacant jobs to job seekers also falls in each sector. Either one or the other externality may dominate, implying, respectively, under- or over-education. A combination of minimum wage and schooling fee can decentralize the efficient allocation
Economic growth · Economics · Efficiency wage · Externality · Labour economics · Microeconomics · Minimum wage · Monopsony · Political science · Reservation wage · Seekers · Unemployment · Wage · Economic Policies and Impacts · Firm Innovation and Growth · Labor market dynamics and wage inequality
Empirical labor economics
A Microfoundation for Social Increasing Returns in Human Capital Accumulation
Workers, Wages, and Technology
Wage Differentials, Employer Size, and Unemployment
Job Mobility and the Careers of Young Men
The role of human capital in economic development evidence from aggregate cross-country data
On the Efficiency of Matching and Related Models of Search and Unemployment
The Comparative Advantage of Educated Workers in Implementing New Technology
Adaptability, productivity, and educational incentives in a matching model
Self-selection in education with matching frictions
A Theory of Career Mobility
Specific Capital, Mobility, and Wages
Wages, Employment Structure and Employer Size-wage Premia
Oligopsony and Monopsonistic Competition in Labor Markets
The Returns to Mobility and Job Search by Gender
| Citation velocity | historical |
|---|---|
| Highly cited | No |