EconPapers    
Economics at your fingertips  
 

Wage dispersion and wage dynamics within and across firms

Carlos Carrillo-Tudela () and Eric Smith ()

No 2009-22, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta

Abstract: This paper examines wage dispersion and wage dynamics in a stock-flow matching economy with on-the-job search. Under stock-flow matching, job seekers immediately become fully informed about the stock of viable vacancies. If only one option is available, monopsony wages result. With more than one firm bidding, Bertrand wages arise. The initial and expected threat of competition determines the evolution of wages and thereby introduces a novel way of understanding wage differences among similar workers. The resulting wage distribution has an interior mode and prominent, well-behaved tails. The model also generates job-to-job transitions with both wage cuts and jumps.

Date: 2009
New Economics Papers: this item is included in nep-dge and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.frbatlanta.org/filelegacydocs/wp0922.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.frbatlanta.org/filelegacydocs/wp0922.pdf [301 Moved Permanently]--> https://www.frbatlanta.org/filelegacydocs/wp0922.pdf)

Related works:
Working Paper: Wage Dispersion and Wage Dynamics Within and Across Firms (2009) Downloads
Working Paper: Wage Dispersion and Wage Dynamics Within and Across Firms (2007) Downloads
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:fip:fedawp:2009-22

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-05-26
Handle: RePEc:fip:fedawp:2009-22