Ahmadzadeh, Amirreza and Kamali-Shahdadi, Behrang (2023) Matching Unskilled/Skilled Workers to Firms Facing Budget Constraints. TSE Working Paper, n. 23-1446

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We study a matching model in which firms face budget constraints. If the pro-duction function only depends on a firm’s technology, a weak stable matching always exists; furthermore, when a strong stable matching does not exist, there is a nearby budget vector for firms such that a strong stable matching exists for the problem with perturbed budgets. If the production function is multiplicative, one can reach a strong stable matching by changing the budget of firms such that the total budget remains the same and each firm’s budget change is bounded by the value of at most one worker for that firm.

Item Type: Monograph (Working Paper)
Language: English
Date: June 2023
Uncontrolled Keywords: Matching Theory, Market Design, Labor Market
JEL Classification: C71 - Cooperative Games
C78 - Bargaining Theory; Matching Theory
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 14 Sep 2023 07:31
Last Modified: 14 Sep 2023 07:31
OAI Identifier: oai:tse-fr.eu:128153
URI: https://publications.ut-capitole.fr/id/eprint/47983
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