Dual Labor Markets, Efficiency Wages, and Search | Zendy

James Albrecht | Zendy; Susan Vroman | Zendy

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Dual Labor Markets, Efficiency Wages, and Search

Author(s) -

James Albrecht,

Susan Vroman

Publication year - 1992

Publication title -

journal of labor economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 8.184

H-Index - 109

eISSN - 1537-5307

pISSN - 0734-306X

DOI - 10.1086/298295

Subject(s) - dual (grammatical number) , economics , efficiency wage , dualism , labour economics , wage , outcome (game theory) , ex ante , microeconomics , dual economy , secondary labor market , labor relations , market economy , macroeconomics , art , literature , philosophy , epistemology

This article presents an equilibrium model of a dual labor market. Firms are assumed to be identical ex ante, and dualism arises endogenously. The dual labor market outcome is supported by efficiency wage and search considerations. Firms choose wage/effort requirement packages optimally given optimal search and effort choice by workers, and vice versa. We prove existence and investigate the occurrence and nature of dual labor market equilibria.

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