Labor Market Matching, Wages, and Amenities

Thibaut Lamadon, Jeremy Lise, Costas Meghir and Jean-Marc Robin

No 19255, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 nonpara- metric 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 di↵erentials, and search frictions that generate between-firm and within-firm dispersion. We find that compensating di↵erentials are substantial on average, but the contribution di↵ers greatly be- tween the lowest and highest types of workers. Finally, we use the model to provide an economic interpretation of several empirical regularities.

Keywords: Matching; Amenities; Job search behavior; Identification; Matched employer employee data (search for similar items in EconPapers)
JEL-codes: J21 J24 J31 J41 J64 (search for similar items in EconPapers)
Date: 2024-07
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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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