Heterogeneous firms facing demand-induced price fluctuations imperfectly compete for heterogeneous workers. It is shown that unemployment may arise in equilibrium because of the combination of uncertainty on product price and mismatch between workers’ skills and firms’ job requirements.
Economics Letters
Demand Uncertainty, Mismatch and (Un)employment
Journal Article
Reference
Jellal, Mohamed, Jacques-François Thisse and Yves Zenou (2005). “Demand Uncertainty, Mismatch and (Un)employment”. Economics Letters 88(1), 33–39. doi.org/10.1016/j.econlet.2005.01.014
Jellal, Mohamed, Jacques-François Thisse and Yves Zenou (2005). “Demand Uncertainty, Mismatch and (Un)employment”. Economics Letters 88(1), 33–39. doi.org/10.1016/j.econlet.2005.01.014
Authors
Mohamed Jellal,
Jacques-François Thisse,
Yves Zenou
