Lari Arthur Viianto, Julen Berasaluce Iza, Coralia Azucena
This chapter exposes an extension of the directed search models with multiple applications, extended to a multisectorial framing where firms are heterogeneous in their production. Workers are homogeneous and choose both the type of firm they wish to apply for and the amount of applications they wish to make. Firms compete to hire workers making take-it-or-leave-it wage offers to one of the received applications and workers accept the highest received offer. As a result we obtain, endogenously, a distribution of workers between the two sectors, the search effort done in each sector, the wage offer distribution and the wage distribution for each sector, as the unemployment rate for each sector.
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