Wage Dispersion and Equilibrium Search. Models: Some Evidence from Italy

Giovanni Sulis ()

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: This paper provides a structural estimation of an equilibrium search model with on-thejob search and heterogeneity in firms productivities using a sample of Italian workers. Allowing for productivity differentials among firms, the model is able to fit the wage distribution satisfactorily. Results indicate that arrival rates of offers for workers are higher when unemployed than when employed and firms exploit their monopsnony power when setting wages. As a result, workers earn far less than their marginal product. The paper also provides an estimate of the underlying distribution of productivity across firms. Geographical stratification reveals also interesting differences in transition parameters across workers.

Keywords: equilibrium search models; wage dispersion; search frictions; monopsony (search for similar items in EconPapers)
JEL-codes: C33 C41 C61 D83 J31 J41 J64 (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-mic
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://crenos.unica.it/crenos/node/201
https://crenos.unica.it/crenos/sites/default/files/wp/04-02.pdf (application/pdf)

Related works:
Journal Article: Wage Dispersion and Equilibrium Search Models: Some Evidence from Italy (2008)
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:cns:cnscwp:200402

Access Statistics for this paper

More papers in Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia Contact information at EDIRC.
Bibliographic data for series maintained by CRENoS ().