Endogenous job destructions and the distribution of wages

Arnaud Cheron and Bénédicte Rouland

Labour Economics, 2011, vol. 18, issue 6, 845-852

Abstract: This paper considers a matching model with both idiosyncratic productivity shocks that hit jobs at random and heterogeneity of workers according to ex ante unobservable abilities. We argue that firms' decisions about reservation productivity can help explain the shape of wage distributions. This is shown from numerical experiments, calibrated to French data, by considering alternative ranges of productivity shocks.

Keywords: Wage distribution; Matching; Firing; Heterogeneity (search for similar items in EconPapers)
Date: 2011
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Working Paper: Endogenous Job Destructions and the Distribution of Wages (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:18:y:2011:i:6:p:845-852

DOI: 10.1016/j.labeco.2011.07.005

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