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Different Skill Levels and Firing Costs in a Matching Model with Uncertainty - An Extension of Mortensen and Pissarides (1994)
Firing costs low-skill unemployment dual labor market vacancies
2013/10/18
A matching model in the line of Mortensen and Pissarides (1994) is augmented with a low- skill labor market and firing costs. It is shown that even with flexible wages unemployment is higher among the...