Vejlin, Rune Majlund; Veramendi, Gregory - In: Quantitative economics : QE ; journal of the … 14 (2023) 3, pp. 935-979
This paper develops a sufficient statistics approach for estimating the role of search frictions in wage dispersion and … wage dispersion. Furthermore, the fraction of displaced workers who suffer a wage loss is informative of frictional wage … methodology to US data, we find that search frictions account for less than 20% of wage dispersion. In addition, we estimate that …