Competition, Wage Commitments, and Application Fees Wang, Ruqu

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Author
Wang, Ruqu
Appears In
Journal of Labor Economics
Subjects
Competition (Economics) -- Analysis; Labor market -- Analysis; Economics
Audience
Academic; Trade
Summary
In this article I intend to justify the rare use of application fees in labor markets. I analyze a model in which there is a training or testing period preceding a worker's effective production period. With various commitment abilities of firms, I find that application fees are used if and only if all future wages can be committed before a worker applies; otherwise, no application fees will be charged. The model is then modified to explain the positive fees in journal submissions and college admissions.
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http://trove.nla.gov.au/work/183875
Work ID
183875

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e.g. test cricket, Perth (WA), "Parkes, Henry"

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