Vejlin, Rune Majlund; Veramendi, Gregory - In: Quantitative Economics 14 (2023) 3, pp. 935-979
This paper develops a sufficient statistics approach for estimating the role of search frictions in wage dispersion and … class of search models. Specifically, the correlation between pre- and post-displacement wages is informative of frictional … methodology to US data, we find that search frictions account for less than 20% of wage dispersion. In addition, we estimate that …