Search, Risk Aversion, and Assortative Matching

Xiaoming Cai

<p>This paper studies assortative matching between heterogeneous workers and firms in a directed search model with production complementarity and risk averse workers. I show that positive assortative matching (PAM) occurs if and only if the&nbsp; &nbsp;the elasticity of complementarity of the production function times that of the matching function exceeds the coefficient of the relative risk aversion of the logarithm of the utility function. This condition is particularly simple if we require PAM to hold for regular search technologies: The utility gain of consuming the match output is log-supermodular.</p>

2024-11-28 (Thursday) 16:40-18:00

Room N302, Economics Building

English

厦门大学经济学院、王亚南经济研究院、邹至庄经济研究院

系列讲座

Menghan Xu

<p>Xiaoming Cai is an Associate Professor of Economics at Peking University HSBC Business School. He received his Bachelor's degree from Peking University in 2008 and his PhD from Vrije Universiteit Amsterdam in 2015. His research focuses on macroeconomics and labor economics, and he has published multiple papers in leading economics journals, including Journal of Economic Theory, International Economic Review, and American Economic Journal: Macroeconomics.</p>

高级经济学系列讲座2024年秋季学期第九讲（总487讲）