SFB 303 Discussion Paper No. A - 58
Author: Bester, Helmut
Title: Specific Skills, Imperfect Information an Job Rationing
Abstract: The paper analyzes labor market equilibrium when job applicants cannot directly observe the amount of
specific training that is provided by different firms. In the labor market equilibrium, the firms` wage offers
convey information about the quality of their training. Because of this informational role, wages may fail to
equilibrate demand and supply for all jobs. This results in an equilibrium with job rationing and unequal
treatment among identical workers.
Creation-Date: June 1986
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