{"title":"Labor Market Matching with Ensuing Competitive Externalities in Large Economies","authors":"","doi":"10.2139/ssrn.2868962","DOIUrl":null,"url":null,"abstract":"This paper presents a general model of an economy of two connected markets: a labor market, in which a continuum of managers are to be assigned to a continuum of firms, and a goods market, in which firms play perfect output competition. A Walrasian equilibrium always exists in the model. If firm technology and human capital are complementary, in equilibrium the positive assortative matching (PAM) is stable; if substutative, the nagative assortative matching (NAM) is stable. As the unit production cost of each firm-manager pair goes to be constant, the PAM will be the unique stable matching except on a null-set.","PeriodicalId":420730,"journal":{"name":"ERN: Bargaining Theory (Topic)","volume":"24 5 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2018-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ERN: Bargaining Theory (Topic)","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.2868962","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 1
Abstract
This paper presents a general model of an economy of two connected markets: a labor market, in which a continuum of managers are to be assigned to a continuum of firms, and a goods market, in which firms play perfect output competition. A Walrasian equilibrium always exists in the model. If firm technology and human capital are complementary, in equilibrium the positive assortative matching (PAM) is stable; if substutative, the nagative assortative matching (NAM) is stable. As the unit production cost of each firm-manager pair goes to be constant, the PAM will be the unique stable matching except on a null-set.