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Specific-capital in equilibrium search models

Research output: Contribution to journalArticlepeer-review

Abstract

This paper develops an equilibrium search model that allows firms to invest in specific-capital. I show that firms that pay higher wages invest more in specific-capital because high-paid workers quit at a lower rate. Also, wage offer density has a thin right tail. Published by Elsevier Science B.V.

Original languageEnglish
Pages (from-to)203-209
Number of pages7
JournalEconomics Letters
Volume74
Issue number2
DOIs
StatePublished - Jan 2002

Keywords

  • Search friction
  • Wage offer density

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