Browsing by Subject "Elasticity of complementarity"

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    Endogenous task allocation and intrafirm cargaining: a note
    (2025) Marczak, Martyna; Beissinger, Thomas
    We develop a model that incorporates task-based production into a matching model with intrafirm wage bargaining. Unlike in existing task-based models, the representative firm derives the optimal task allocation as a function of capital and labor, rather than relative factor prices. Embedding this mechanism in a model with strategic employment choice, we show how the properties of task-level technology affect the extent of overhiring.