In this paper, we consider a labor market in which workers differ in their abilities and jobs differ in their skill requirements. We take the distribution of worker abilities as given (a fraction p of the workers is low-skill, a fraction 1-p is high-skill), but we model the determination of...

This paper investigates the interaction between education decisions by workers and investment decisions by firms in a random matching model with endogenous heterogeneity. I analyze the efficiency properties of the equilibrium and find that in the presence of search frictions and investment costs...

In this paper, we use quantile regression methods to analyze the gender gap in the Netherlands. Specifically, we use data from the 1992 wave of the OSA Labour Survey Panel to decompose the difference between the distributions of wages for males and females who are employed full-time. The...

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