EFFECTIVENESS OF CENTRALIZED MECHANISM OF LABOR RESOURCE ALLOCATION – EXPERIMENTAL TESTS

Abstract

In the article the issue of labor resources allocation in the context of the emerging field of economic sciences known as “market design” was discussed. The assumptions for the designed experimental environment were discussed. An experimental variable and variables dependent on it were defined. The main objective of the paper is to develop a matching mechanism for participants in the experiment as a basis for a broader, centralized resource allocation system in the labor market. The study confirmed the hypothesis that fulfilling the assumptions of stable allocations theory improves the matching efficiency in the labor market and thus reduces the frictional unemployment.