Search Intensity, Directed Search And The Wage Distribution

Bruno Decreuse and Andre Zylberberg ()

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: We propose a search equilibrium model in which homogenous rms post wages along with a vacancy to attract job-seekers, while homogenous unemployed workers invest in costly job-seeking. The key innovation relies on the organization of the search market and the search behavior of the job-seekers. The search market is continuously segmented by wage level, individuals can spread their search investment over the di¤erent sub-markets, and search intensity has marginal decreasing returns on each sub-market. We show that there exists a non-degenerate equilibrium wage distribution. The density of this wage distribution is increasing at low wages, and decreasing at high wages. Under additional restrictions, it is hump-shaped, and it can be right-tailed. Our results are illustrated by an example originating a Beta wage distribution.

Keywords: Search e¤ort; Segmented markets; Equilibrium wage dispersion (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-dge and nep-lab
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00638150
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Journal of the European Economic Association, 2011, 9 (6), pp.20-38. ⟨10.1111/j.1542-4774.2011.01039.x⟩

Downloads: (external link)
https://shs.hal.science/halshs-00638150/document (application/pdf)

Related works:
Journal Article: SEARCH INTENSITY, DIRECTED SEARCH, AND THE WAGE DISTRIBUTION (2011)
Working Paper: Search Intensity, Directed Search And The Wage Distribution (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00638150

DOI: 10.1111/j.1542-4774.2011.01039.x

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().