Matching, Sorting, and Wages

Jeremy Lise, Costas Meghir and Jean-Marc Robin
Additional contact information
Costas Meghir: Economics department - MIT - Massachusetts Institute of Technology

Post-Print from HAL

Abstract: We develop an empirical search-matching model which is suitable for analyzing the wage, employment and welfare impact of regulation in a labor market with heterogeneous workers and jobs. To achieve this we develop an equilibrium model of wage determination and employment which extends the current literature on equilibrium wage determination with matching and provides a bridge between some of the most prominent macro models and microeconometric research. The model incorporates productivity shocks, long-term contracts, on-the-job search and counter-offers. Importantly, the model allows for the possibility of assortative matching between workers and jobs due to complementarities between worker and job characteristics. We use the model to estimate the potential gain from optimal regulation and we consider the potential gains and redistributive impacts from optimal unemployment benefit policy. Here optimal policy is defined as that which maximizes total output and home production, accounting for the various constraints that arise from search frictions. The model is estimated on the NLSY using the method of moments.

Keywords: Sorting; Mismatch; Search-matching; Wage dynamics (search for similar items in EconPapers)
Date: 2016-01
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03392023v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62)

Published in Review of Economic Dynamics, 2016, 19 (Special Issue in Honor of Dale Mortensen), pp.63 - 87. ⟨10.1016/j.red.2015.11.004⟩

Downloads: (external link)
https://sciencespo.hal.science/hal-03392023v1/document (application/pdf)

Related works:
Working Paper: Matching, Sorting, and Wages (2018)
Journal Article: Matching, Sorting and Wages (2016)
Working Paper: Matching, Sorting, and Wages (2016)
Working Paper: Matching, Sorting and Wages (2013)
Working Paper: Matching, Sorting and Wages (2013)
Working Paper: Matching, Sorting and Wages (2009)
Working Paper: Matching, Sorting and Wages (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:hal:journl:hal-03392023

DOI: 10.1016/j.red.2015.11.004

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().