TY  - RPRT
        AU  - Schlicht, Ekkehart
        TI  - Hiring Standards and Market Clearing
        PY  - 2002/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 481
        UR  - https://www.iza.org/publications/dp481
        AB  - Consider a labour market with heterogeneous workers. Firms recruit workers by fixing a
hiring standard and a wage offer simultaneously. A more demanding hiring standard
necessitates a better wage offer in order to attract enough qualified applicants. As a result,
an efficiency wage effect is obtained. An equilibrium emerges which does not clear the labour
market. The wage level depends on structural characteristics of labour supply, such as
heterogeneity and mobility of the workers. The model is contrasted with prevailing efficiency
wage theories, and policy implications are also discussed.
        KW  - hiring standards
KW  - efficiency wages
KW  - wage formation
KW  - unemployment
        ER  -