Queueing and Searching
University at Albany, SUNY - Department of Economics
April 14, 2010
This paper applies queueing theory to derive the equilibrium of a labor market with frictions. Queueing arises when workers can get jobs by waiting at a firm for a position to open. Queueing theory provides expressions for the expected numbers of vacancies, searching workers and queueing workers. As the ratio of workers to firms increases, the ratio of queueing to searching workers increases. At high ratios of workers to firms, dual wage equilibria arise.
Number of Pages in PDF File: 37
Keywords: Queueing, Searching, Unemployment, Wages, Vacancies
JEL Classification: J31, J64, C61working papers series
Date posted: April 18, 2010
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo6 in 0.422 seconds