On-the-Job Search and the Wage Distribution

Bent Jesper Christensen, Rasmus Lentz, Dale Mortensen, George R. Neumann and Axel Werwatz
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George R. Neumann: University of Iowa

Journal of Labor Economics, 2005, vol. 23, issue 1, 31-58

Abstract: The article structually estimates an on-the-job search model of job separations. Given each employer pays observably equivalent workers the same but wages are dispersed across employers, an employer's separation flow is the sum of an exogenous outflow unrelated to the wage and a job-to-job flow that decreases with the employer's wage. Using data from the Danish Integrated Database for Labour Market Research, the empirical results imply, as predicted by theory, that search effort declines with the wage. Furthermore, the estimates explain the employment effect, defined as the horizontal difference between the distribution of wages earned and the wage offer distribution.

Date: 2005
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Related works:
Working Paper: On the Job Search and the Wage Distribution (2003)
Working Paper: On the job search and the wage distribution (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:v:23:y:2005:i:1:p:31-58

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