Abstract
We study how the number of traders affects the interaction between a centralized exchange and bilateral negotiations in an experimental labor market with excess supply and incomplete contracts. Our large markets are three times as large as our small markets. In bilateral negotiations firms obtain information about employees' performance in previous jobs. Though market forces put a downward pressure on wages in large markets, reciprocal tendencies do not differ. Hence, the occurrence of bilateral negotiations increases overall efficiency for both market sizes.
| Original language | English |
|---|---|
| Pages (from-to) | 544-548 |
| Number of pages | 5 |
| Journal | Journal of Economic Behavior and Organization |
| Volume | 76 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - Dec 2010 |
| Externally published | Yes |
Bibliographical note
Funding Information:Financial support by The Spanish Ministry of Science and Innovation , The Barcelona GSE research Network , CONSOLIDER-INGENIO 2010 (CSD2006-00016), The São Paulo School of Business Administration (EAESP) and The School of Economics (EESP) of the Getulio Vargas Foundation in São Paulo is gratefully acknowledged. The authors thank Fabiana D’Atri and Marcela Prada for very able research assistance.
Funding
Financial support by The Spanish Ministry of Science and Innovation , The Barcelona GSE research Network , CONSOLIDER-INGENIO 2010 (CSD2006-00016), The São Paulo School of Business Administration (EAESP) and The School of Economics (EESP) of the Getulio Vargas Foundation in São Paulo is gratefully acknowledged. The authors thank Fabiana D’Atri and Marcela Prada for very able research assistance.
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth
Keywords
- Experiments
- Gift exchange
- Market size
- Worker recruitment
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