EQUILIBRIUM YOUTH UNEMPLOYMENT

TM ANDERSEN, H VETTER

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Abstract

In a model with continuous entry and exit to the labor market, it is shown that workers exploit their monopoly power by adopting a seniority system implying youth unemployment or an age determined insider-outsider distinction. The incentives of young outsiders to unberbid are curtailed by their expectation of becoming insiders in the future
OriginalsprogEngelsk
TidsskriftJournal of Economics
Vol/bind61
Udgave nummer1
Sider (fra-til)1-10
Antal sider10
ISSN0931-8658
StatusUdgivet - 1995
Udgivet eksterntJa

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