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Equilibrium search with continuous productivity dispersion: theory and nonparametric estimation

Christian Bontemps, Jean-Marc Robin and Gérard van den Berg

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Abstract: In this article we develop an equilibrium search model with a continuous distribution of firm productivity types within a given labor market. We characterize equilibrium, derive expressions for the endogenous equilibrium wage distributions, and characterize the set of wage distributions that can be generated by the model. We develop a structural nonparametric estimation method for the productivity distribution. We estimate the model using French longitudinal survey data on labor supply, and we compare the results with those from a French panel data set of firms. The results are informative on the degree to which firms exploit search frictions.

Date: 2000
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Citations: View citations in EconPapers (218)

Published in International Economic Review, 2000, 41 (2), pp.305 - 358

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Related works:
Journal Article: Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation (2000)
Working Paper: Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation (2000)
Working Paper: Equilibrium Search with Continuous Productivity Dispersion: Theory and Non-Parametric Estimation (1998)
Working Paper: Equilibrium Search with Continuous Productivity Dispersion: Theory and Non-Parametric Estimation (1998) Downloads
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