TY - JOUR
T1 - Job search with bidder memories
AU - Carrillo-Tudela, Carlos
AU - Menzio, Guido
AU - Smith, Eric
PY - 2011/8
Y1 - 2011/8
N2 - This article revisits the no-recall assumption in job search models with take-it-or-leave-it offers. Workers who can recall previously encountered potential employers in order to engage them in Bertrand bidding have a distinct advantage over workers without such attachments. Firms account for this difference when hiring a worker. When a worker first meets a firm, the firm offers the worker a sufficient share of the match rents to avoid a bidding war in the future. The pair share the gains to trade. In this case, the Diamond paradox no longer holds.
AB - This article revisits the no-recall assumption in job search models with take-it-or-leave-it offers. Workers who can recall previously encountered potential employers in order to engage them in Bertrand bidding have a distinct advantage over workers without such attachments. Firms account for this difference when hiring a worker. When a worker first meets a firm, the firm offers the worker a sufficient share of the match rents to avoid a bidding war in the future. The pair share the gains to trade. In this case, the Diamond paradox no longer holds.
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U2 - 10.1111/j.1468-2354.2011.00643.x
DO - 10.1111/j.1468-2354.2011.00643.x
M3 - Article
AN - SCOPUS:80052224152
SN - 0020-6598
VL - 52
SP - 639
EP - 655
JO - International Economic Review
JF - International Economic Review
IS - 3
ER -