Participation, Recruitment Selection, and the Minimum Wage
在异质性工人和议价工资的搜索匹配模型中，发现工人参与率总是过低，引入小额最低工资可提高参与、就业和净总收入。
Abstract In this paper, we re‐examine the efficiency of participation with heterogeneous workers in a search‐matching model with bargained wages and free entry. Assuming that firms hire their best applicants, we show that participation is always too low. The reason for this is a hold‐up phenomenon: to be active, a worker must pay the entire search cost whereas part of the gain from this investment goes to the firm. As a consequence, introducing a (small) minimum wage raises participation, job creation, and employment. Therefore, net aggregate income of the economy is increased.