This paper applies an equilibrium search to study the transition from schooling to work of US high school graduates. We consider the case where there is heterogeneity in firm productivity and the number of firm types is discrete. For this case the estimation problem is non-standard and the...

Equilibrium search models require unobserved heterogeneity in productivityto fit observed wage distribution data, but provide no guidance about the location parameter of the heterogeneity. In this paper we show that the location of the productivity heterogeneity implies a mode in a kernel...