An Equilibrium Model of Wage Dispersion with Sorting

Jesper Bagger and Rasmus Lentz
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Rasmus Lentz: University of Wisconsin

No 271, 2008 Meeting Papers from Society for Economic Dynamics

Abstract: The paper presents a general equilibrium model with search on the job. Workers differ in terms of skill levels and firms differ in terms of productivity. Depending on the production function characteristics, sorting in matching may occur. The paper estimates the model on Danish match data and presents results on sources of wage dispersion.

Date: 2008
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:red:sed008:271

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