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Globalization and the market for high‐ability managers
Author(s) -
Davidson Carl,
Matusz Steven J.
Publication year - 2014
Publication title -
international journal of economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 11
eISSN - 1742-7363
pISSN - 1742-7355
DOI - 10.1111/ijet.12030
Subject(s) - globalization , unemployment , productivity , economics , search cost , industrial organization , market economy , microeconomics , macroeconomics
We add heterogeneous workers and search‐generated unemployment to a Melitz‐style economy. Depending on their productivity, firms choose to search exclusively for one of two types of skilled workers, or possibly undertake a broad search for either. Increased globalization changes the cost–benefit calculus of different search strategies and therefore alters the range of firms willing to implement the alternative search strategies.