Job Search, Bargaining, and Wage Dynamics

Shintaro Yamaguchi

Global COE Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: This paper constructs and estimates a model of strategic wage bargaining with on-the-job search to explore three different components of wages: general human capital, match-specific capital, and outside option. As the workers find better job opportunities, the current employer has to compete with outside firms to retain them. This between-firm competition results in wage growth even when productivity remains the same. The model is estimated by a simulated minimum distance estimator and data from the NLSY79. The results indicate that the improved value of outside option raises wages of ten-year-experienced workers by 16%.

Date: 2009-01
New Economics Papers: this item is included in nep-bec, nep-dge, nep-hrm and nep-lab
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http://gcoe.ier.hit-u.ac.jp/research/discussion/2008/pdf/gd08-026.pdf (application/pdf)

Related works:
Journal Article: Job Search, Bargaining, and Wage Dynamics (2010)
Working Paper: Job Search, Bargaining, and Wage Dynamics (2007)
Working Paper: Job Search, Bargaining, and Wage Dynamics (2006)
Working Paper: Job Search, Bargaining, and Wage Dynamics (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:hst:ghsdps:gd08-026

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