The Review of Economic Studies
· restud.com
We study a parsimonious model of a competitive labor market in which firms privately screen workers to identify talent. The equilibrium exhibits dispersion in wages and productivity; when talent is scarce, firms with superior screening skills post higher wages, attract better applicants, and recruit more talented workers.
Simon Board, UCLA, Moritz Meyer-ter-Vehn, UCLA, and Tomasz Sadzik, UCLA
We study a parsimonious model of a competitive labor market in which firms privately sc...