In a decentralized economy where homogeneous workers search for the best job offers, mirror Diamond’s paradox hold: firms dispose of monopsonistic power allowing them to post a low wage such as to reap all worker surplus. This paper shows that additional uncertainty on job qualify favors the emergence of a Pareto-dominant equilibrium. If some firms want to attract those workers who perceive on-the-job taks as extremely tough, they will post higher whages, to the benefit of the more enthusiastic workers.
BESANCENOT, D. et VRANCEANU, R. (2001). Incertitude, bien-être et distribution des salaires dans un modèle de recherche d’emploi. ESSEC Business School.