Browsing by Subject "Task approach"

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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.
Technical change, task allocation, and labor unions
(2022) Marczak, Martyna; Beißinger, Thomas; Brall, Franziska
We propose a novel framework that integrates the task approach" for a more precise production modeling into the search-and-matching model with low- and high-skilled workers, and wage setting by labor unions. We establish the relationship between task reallocation and changes in wage pressure, and examine how skill- biased technical change (SBTC) affects the task composition, wages of both skill groups, and unemployment. In contrast to the canonical model with a fixed task allocation, low-skilled workers may be harmed in terms of either lower wages or higher unemployment depending on the relative task-related productivity profile of both worker types. We calibrate the model to the US and German data for the periods 1995-2005 and 2010-2017. The simulated effects of SBTC on low-skilled unemployment are largely consistent with observed developments. For example, US low-skilled unemployment increases due to SBTC in the earlier period and decreases after 2010.