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Matched employer-employee data exhibits both wage and productivity dispersion across firms and suggest that a linear relationship holds between the average wage paid and a firm productivity. The purpose of this paper is to demonstrate that these facts can be explained by a search and matching...
Persistent link: https://www.econbiz.de/10012463616
Despite stringent dismissal restrictions in most European countries, rates of job creation and destruction are remarkably similar across European and North American labor markets. This paper shows that relative-wage compression is conducive to higher employer-initiated job turnover, and argues...
Persistent link: https://www.econbiz.de/10012473000
This paper proposes a non-pecuniary measure of career achievement, Seniority. Based on a database of over 5 million resumes, this metric exploits the variation in job titles and how long they take to attain. When non-monetary factors influence career choice, inference benefits from the use of...
Persistent link: https://www.econbiz.de/10013334397
occupations. In our theory, the interplay between heterogeneity in tastes for leisure and occupational differences in non …
Persistent link: https://www.econbiz.de/10014372422
Labor market tightness following the height of the Covid-19 pandemic led to an unexpected compression in the US wage distribution that reflects, in part, an increase in labor market competition. Rapid relative wage growth at the bottom of the distribution reduced the college wage premium and...
Persistent link: https://www.econbiz.de/10014247930
slowly move up the job ladder. Guided by my theory, I present evidence that these dynamic effects are present and powerful … to the minimum wage is small on impact and grows dramatically over time. To verify my theory's mechanisms, I additionally … theory and my empirical results on the skill premium). On the basis of these theoretical and empirical results, I conclude …
Persistent link: https://www.econbiz.de/10014247949
Over the last several decades, rising pay dispersion between firms accounts for the majority of the dramatic increase in earnings inequality in the United States. This paper shows that a distinct cross-cohort pattern drives this rise: newer cohorts of firms enter more dispersed and stay more...
Persistent link: https://www.econbiz.de/10014226174
This paper builds, identifies and estimates a model of the labor market that features strategic interactions in wage setting and two-sided heterogeneity in order to shed light on the sources of wage inequality. We provide a tractable characterization of the model equilibrium and demonstrate its...
Persistent link: https://www.econbiz.de/10014544771
When match formation is costly and wage determination is decentralized, privately optimal investments in job and worker quality diverge from socially efficient outcomes. To explore this issue, I consider search equilibrium environments with endogenous quality distributions for jobs and workers....
Persistent link: https://www.econbiz.de/10012470285
This paper extends Lucas and Prescott's (1974) search model to develop a notion of rest unemployment. The economy consists of a continuum of labor markets, each of which produces a heterogeneous good. There is a constant returns to scale production technology in each labor market, but labor...
Persistent link: https://www.econbiz.de/10012464874