Browsing by Subject "Search and matching models"

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    Labor market effects of knowledge spillovers
    (ODTÜ İİBF, 2010) Bayraktar-Sağlam, B.; Sayek, Selin
    This paper studies the diffusion of technology that occurs from Multinational Enterprises to domestic firms via worker mobility. It concentrates on the wage and unemployment implications of diffusion of knowledge through labor mobility in the local labor market. We construct a heterogeneous search and matching model where the labor mobility is restricted by the existence of binding contracts. Findings of the model reveal that knowledge spillovers through the movement of workers from foreign to local firm lower the firm premium and the skill premium. Further results indicate that technological progress raising the productivity gap between the foreign and the local film leads to an increase in the unemployment rate, the fim1 premium and the skill premium.
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    ItemOpen Access
    Wage inequality, unemployment and linkages: Do the multinational enterprises ride to the rescue?
    (Edizioni Tracce, 2021-09-29) Bayraktar Sağlam, B.; Sayek Böke, Selin
    This paper aims to discuss the wage and unemployment effects of backward, horizontal and forward linkages established between MNEs and domestic firms in imperfect labor markets. The search and matching model allows us to derive different wages for different types of linkages. The findings of the paper suggest that buyer-supplier linkages between domestic and foreign firms and reservation wages due to frictions in the labor market are responsible for the differential wage effects of foreign firms. The paper also highlights the crucial effect of linkages on job creation and unemployment rates in local economies.