Université de Lausanne
Faculté des HEC
Département d'économétrie et d'économie politique


Cahier de recherches économiques du DEEP No. 13.09

 

Jan Christoph Schlegel

Contracts versus Salaries in Matching: Comment
(replaced by Cahier 14.05 "Contracts versus Salaries in Matching: A General Result")


June 2013

Abstract
In this note, I extend the work of Echenique (Amer. Econ. Rev. 102(1): 594-601, 2012) to show that under the assumption of unilaterally substitutable preferences a matching market with contracts may be embedded into a matching market with salaries. In particular, my result applies to the recently studied problem of cadet-to-branch matching.

Keywords: Matching; Matching with contracts; Matching with salaries; Embedding; Substitutes; Unilateral substitutes

JEL classification: C78