Labor Market Matching, Wages, and Amenities

Thibaut Lamadon, Jeremy Lise, Costas Meghir and Jean-Marc Robin
Additional contact information
Thibaut Lamadon: University of Chicago
Jeremy Lise: Cornell University
Costas Meghir: Yale University

No 2024:13, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper develops the nonparametric identification of models with production complementarities, worker-firm specific disutility of labor and search frictions. Mobility in the model is subject to preference shocks, and we assume that firms can write wage contracts. We develop a constructive proof for the nonparametric identification of the model primitives from matched employer-employee data. We use the estimated model to decompose the sources of wage dispersion into worker heterogeneity, compensating differentials, and search frictions that generate between-firm and within-firm dispersion. We find that compensating differentials are substantial on average, but the contribution differs greatly betweenthe lowest and highest types of workers. Finally, we use the model to provide an economic interpretation of several empirical regularities.

Keywords: workfirm; labor; searchfrictions (search for similar items in EconPapers)
JEL-codes: A00 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2024-09-06
New Economics Papers: this item is included in nep-bec, nep-lab and nep-ltv
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Labor Market Matching, Wages, and Amenities (2024)
Working Paper: Labor Market Matching, Wages, and Amenities (2024)
Working Paper: Labour market matching, wages, and amenities (2024)
Working Paper: Labor Market Matching, Wages, and Amenities (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:ifauwp:2024_013

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