[PDF] Endogenous Wage And Capital Dispersion On The Job Search And The Matching Technology eBook

Author : Dale T. Mortensen
Publisher : IZA Prize in Labor Economics
Page : 0 pages
File Size : 15,29 MB
Release : 2016-06-16
Category : Business & Economics
ISBN : 9780198779995

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Dale T. Mortensen and Christopher A. Pissarides are the recipients (with Peter Diamond) of the Nobel memorial Prize in Economics 2010. They have made path-breaking contributions to the analysis of markets with search and matching frictions, which account for much of the success of job searchtheory and the flows approach in becoming a leading tool for microeconomic and macroeconomic analysis of labor markets. Both scientists have gained groundbreaking insights through individual as well as joint research. Consequently, this volume not only features several papers which helped shape theequilibrium search model, including some early contributions which have initiated the research on what is known today as the search and matching model of the labor market, but it also presents a joint paper by the IZA Prize Laureates, which is a complete statement of the equilibrium search andmatching model with endogenous job creation and job destruction.As part of the IZA Prize Series, the book presents a selection of their most important work which has highly enriched research on unemployment as an equilibrium phenomenon, on labor market dynamics, and on cyclical adjustment.

Author : Matthias S. Hertweck
Publisher :
Page : pages
File Size : 20,42 MB
Release : 2010
Category :
ISBN :

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This paper addresses the large degree of frictional wage dispersion in US data. The standard job matching model without on-the-job search cannot replicate this pattern. With on-the-job search, however, unemployed job searchers are more willing to accept low wage offers since they can continue to seek for better employment opportunities. This explains why observably identical workers may be paid very differently. Therefore, we examine the quantitative implications of on-the-job search in a stochastic job matching model. Our key result is that the inclusion of variable on-the-job search increases the degree of frictional wage dispersion by an order of a magnitude.

Author : Dale Mortensen
Publisher : MIT Press
Page : 170 pages
File Size : 21,50 MB
Release : 2003
Category : Business & Economics
ISBN : 9780262633192

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A theoretical and empirical examination of wage differentials findsthat traditional theories of competition do not explain why workers with identical skills are paid differently.

Author : Jesper Bagger
Publisher :
Page : pages
File Size : 19,6 MB
Release : 2014
Category : Economics
ISBN :

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This paper studies wage dispersion in an equilibrium on-the-job-search model with endogenous search intensity. Workers differ in their permanent skill level and firms differ with respect to productivity. Positive (negative) sorting results if the match production function is supermodular (submodular). The model is estimated on Danish matched employer-employee data. We find evidence of positive assortative matching. In the estimated equilibrium match distribution, the correlation between worker skill and firm productivity is 0.12. The assortative matching has a substantial impact on wage dispersion. We decompose wage variation into four sources: Worker heterogeneity, firm heterogeneity, frictions, and sorting. Worker heterogeneity contributes 51% of the variation, firm heterogeneity contributes 11%, frictions 23%, and finally sorting contributes 15%. We measure the output loss due to mismatch by asking how much greater output would be if the estimated population of matches were perfectly positively assorted. In this case, output would increase by 7.7%.

Author : Xuelin Zhang
Publisher :
Page : 0 pages
File Size : 10,9 MB
Release : 1996
Category : Child care
ISBN :

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The existing literature on empirical job search models concentrates on studying the effects of unemployment insurance (UI) benefits, and the primary interest has been in male displaced workers. It is usually assumed that displaced workers start to search for new jobs immediately after the separation, treating the labor force participation decision of the displaced workers as an exogenous issue. This thesis proposes a job search model where the participation decision of the displaced workers is made endogenous. The introduction of participation data enables us to identify more parameters and to avoid potential selection bias in the empirical work. The model is applied to study how the presence of young children affects the reservation wage and the escape rate from unemployment of female workers, and the gender wage gap between male and female workers. By its empirical work, the thesis tries to broaden the range of application of the job search theory. The empirical results of the thesis are based on a panel of young Canadians two suffered a permanent job displacement. It is found that the offer arrival rate is the primary channel through which child status may affect the reservation wage of female workers, while child care cost differentials between the states of employment and unemployment may play only a minor role. It is also found that the effects of child status on male workers are much smaller than that on female workers with respect to the reservation wage, the offer arrival rate and the escape rate from unemployment. This suggests that the presence of young children in a worker's family contributes an important part to the gender wage gap.

Author : Christopher J. Flinn
Publisher : MIT Press
Page : 321 pages
File Size : 50,83 MB
Release : 2011-02-04
Category : Business & Economics
ISBN : 0262288761

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The introduction of a search and bargaining model to assess the welfare effects of minimum wage changes and to determine an “optimal” minimum wage. In The Minimum Wage and Labor Market Outcomes, Christopher Flinn argues that in assessing the effects of the minimum wage (in the United States and elsewhere), a behavioral framework is invaluable for guiding empirical work and the interpretation of results. Flinn develops a job search and wage bargaining model that is capable of generating labor market outcomes consistent with observed wage and unemployment duration distributions, and also can account for observed changes in employment rates and wages after a minimum wage change. Flinn uses previous studies from the minimum wage literature to demonstrate how his model can be used to rationalize and synthesize the diverse results found in widely varying institutional contexts. He also shows how observed wage distributions from before and after a minimum wage change can be used to determine if the change was welfare-improving. More ambitiously, and perhaps controversially, Flinn proposes the construction and formal estimation of the model using commonly available data; model estimates then enable the researcher to determine directly the welfare effects of observed minimum wage changes. This model can be used to conduct counterfactual policy experiments—even to determine “optimal” minimum wages under a variety of welfare metrics. The development of the model and the econometric theory underlying its estimation are carefully presented so as to enable readers unfamiliar with the econometrics of point process models and dynamic optimization in continuous time to follow the arguments. Although most of the book focuses on the case where only the unemployed search for jobs in a homogeneous labor market environment, later chapters introduce on-the-job search into the model, and explore its implications for minimum wage policy. The book also contains a chapter describing how individual heterogeneity can be introduced into the search, matching, and bargaining framework.

Author : Coen N. Teulings
Publisher :
Page : 44 pages
File Size : 49,29 MB
Release : 2017
Category : Job hunting
ISBN :

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A wide class of models with On-the-Job Search (OJS) predicts that workers gradually select into better-paying jobs. We develop a simple methodology to test predictions implied by OJS using two sources of identification: (i) time-variation in job-finding rates and (ii) the time since the last lay-off. Conditional on the termination date of the job, job duration should be distributed uniformly. This methodology is applied to the NLSY 79. We find remarkably strong support for all implications. The standard deviation of the wage offer distribution is about 15%. OJS accounts for 30% of the experience profile, 9% of total wage dispersion and an average wage loss of 11% following a lay-off.