Faculty of Economics and Business Administration Publications Database

Human capital externalities with monopsonistic competition

Authors:
Source:
Volume: 106
Pages: 95 - 97
Month: February
ISSN-Print: 0165-1765
Link External Source: Online Version
Year: 2010
Keywords: Externalities; Human capital; Multiple equilibria
Abstract:

This paper provides a novel microeconomic foundation for pecuniary human capital externalities in a labor market model of monopsonistic competition. Multiple equilibria arise because of a strategic complementarity in investment decisions.

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