Job search with ubiquity and the wage distribution

Bruno Decreuse and Andre Zylberberg ()

MPRA Paper from University Library of Munich, Germany

Abstract: We propose a search equilibrium model in which homogenous firms post wages along with a vacancy to attract job-seekers, while homogenous unemployed workers invest in costly search. The key innovation relies on the organization of the search market and the search behavior of the job-seekers. The search market is segmented by wage level, and individuals are ubiquitous in the sense they can choose the amount of search effort spent on each (sub-)market. We show that there exists a non-degenerate equilibrium wage distribution. Remarkably, the density of this wage distribution is hump-shaped, and it can be right-tailed. Our results are illustrated by an example originating a Beta wage distribution.

Keywords: Search effort; Segmented markets; Equilibrium wage dispersion (search for similar items in EconPapers)
JEL-codes: D83 J31 J41 J64 (search for similar items in EconPapers)
Date: 2006, Revised 2007-04
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: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/3630/1/MPRA_paper_3630.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/3666/1/MPRA_paper_3666.pdf revised version (application/pdf)

Related works:
Working Paper: Job search with ubiquity and the wage distribution (2007)
Working Paper: Job search with ubiquity and the wage distribution (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:3630

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