Work

Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation

Year: 2000

Type: article

Abstract: In this article we develop an equilibrium search model with a continuous distribution of firm productivity types within a given labor market. We characterize equilibrium, derive expressions for the endogenous equilibrium wage distributions, and characterize the set of wage distributions that can be generated by the model. We develop a structural nonparametric estimation method for the productivity distribution. We estimate the model using French longitudinal survey data on labor supply, and we compare the results with those from a French panel data set of firms. The results are informative on the degree to which firms exploit search frictions.

Source: International Economic Review

DOI: 10.1111/1468-2354.00066

Authors: Christian Bontemps, Jean‐Marc Robin, Gerard J. Van Den Berg

Institutions: Institut National de la Statistique et des Etudes Economiques, Institut National de la Recherche Agronomique, Tinbergen Institute

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2298408081