Labor Market Matching, Wages, and Amenities

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

No 32687, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper develops an equilibrium labor market model that jointly incorporates worker heterogeneity, firm heterogeneity, compensating differentials, search frictions, and Becker–type complementarities. We show that the primitives of the model are nonparametrically identified using matched employer–employee data. Unobserved heterogeneity can be recovered in the first stage in a fully model consistent way, making estimation very tractable. We apply the framework to Swedish administrative data and find substantial heterogeneity in worker preferences over firms, large non-pecuniary contributions to wage dispersion, and meaningful but imperfect sorting. Our estimates provide a structural interpretation of observed wage premia, mobility patterns, and sorting patterns in the data.

JEL-codes: J0 J01 J20 J31 J41 (search for similar items in EconPapers)
Date: 2024-07
New Economics Papers: this item is included in nep-bec and nep-lab
Note: EFG LS TWP
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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: Labor Market Matching, Wages, and Amenities (2024)
Working Paper: Labour market matching, wages, and amenities (2024)
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