TY  - JOUR
AU  - Lang,Kevin
AU  - Majumdar,Sumon
TI  - The Pricing of Job Characteristics When Markets Do Not Clear: Theory and Implications
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9911
PY  - 2003
Y2  - August 2003
UR  - http://www.nber.org/papers/w9911
L1  - http://www.nber.org/papers/w9911.pdf
N1  - Author contact info:
Kevin Lang
Department of Economics
Boston University
270 Bay State Road
Boston, MA  02215
Tel: 617/353-5694
Fax: 617/353-4001
E-Mail: lang@bu.edu
AB  - This paper examines nonsequential search when jobs vary with respect to nonpecuniary characteristics. In the presence of frictions in the labor market, the equilibrium job distribution need not show evidence of compensating wage differentials. The model also generates several pervasive features of labor markets: unemployment and vacancies, apparent discrimination, and market segmentation. When workers are homogeneous, restrictions on the range of job offers decrease welfare and cannot reduce unemployment. However, when workers have heterogeneous preferences, such restrictions may lower unemployment and can even lead to a Pareto-improvement in welfare. We consider the impact of policies banning discrimination, regulating working-conditions and imposing a minimum wage.
ER  -