Holzner, Christian; Launov, Andrey - ifo Leibniz-Institut für Wirtschaftsforschung an der … - 2005
We introduce skill groups and different production technologies into the Burdett-Mortensen model of on the job search. Supermodularity of the different skill groups in the production process leads to a positive intra-firm wage correlation between skill groups. Increasing returns to scale allow...