EconPapers    
Economics at your fingertips  
 

Microeconometric search-matching models and matched employer-employee data

Fabien Postel-Vinay and Jean-Marc Robin

SciencePo Working papers Main from HAL

Abstract: The recent advent of matched employer-employee data as part of the labor market scholar's toolbox has allowed a great deal of progress in our understanding of individual labor earnings. A growing number of empirical analyzes of available matched employer-employee data sets now combine with the already voluminous literature on empirical wage equations based on individual or household survey data to draw an ever richer picture of wage dispersion, individual wage dynamics, and the productivity-wage relationship. In this chapter we tour the empirical wage equations literature along these three lines and make a case that viewing it through the lens of structural job search models can help clarify and unify some of its recurring findings. Among other things, we emphasize and quantify the role of matching frictions in explaining the share of "residual" wage dispersion that is left unexplained by the reduced-form approach. Secondly, we quantitatively assess the importance of labor market competition between employers relative to non-competitive wage formation mechanisms (namely, wage bargaining) as a theoretical underpinning of the wage-productivity relationship. Thirdly, we show how search frictions combined with a theoretically founded wage formation rule based on renegotiation by mutual consent can account for the widely documented dynamic persistence of individual wages. We conclude with a list of questions that are open to further research.

Keywords: Labor market frictions; Wage distributions; Wage dynamics; Job mobility; Matched employer-employee data (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Richard Blundell; Newey W.K; Persson T. Advances in Economics and Econometrics Theory and Applications, Ninth World Congress, 3, Cambridge University Press, pp.279 - 310, 2006, Econometric Society Monographs, 9780521871549

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Microeconometric Search-Matching Models and Matched Employer-Employee Data (2006)
Working Paper: Microeconometric Search-Matching Models and Matched Employer-Employee Data (2006)
Working Paper: Microeconometric search-matching models and matched employer-employee data (2006)
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:spmain:hal-03587666

Access Statistics for this paper

More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().

 
Page updated 2025-03-31
Handle: RePEc:hal:spmain:hal-03587666