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Title: On-the-Job Search and the Wage Distribution

Citation Type: Journal Article

Publication Year: 2005

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Abstract: The article structually estimates an on-the-job search model of job separations. Given each employer pays observably equivalent workers the same but wages are dispersed across employers, an employer's separation flow is the sum of an exogenous outflow unrelated to the wage and a job-to-job flow that decreases with the employer's wage. Using data from the Danish Integrated Database for Labour Market Research, the empirical results imply, as predicted by theory, that search effort declines with the wage. Furthermore, the estimates explain the employment effect, defined as the horizontal difference between the distribution of wages earned and the wage offer distribution.

Url: https://www.journals.uchicago.edu/doi/10.1086/425432

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Authors: Neumann, George R.; Christensen, Bent Jesper; Mortensen, Dale T.; Werwatz, Axel; Lentz, Rasmus

Periodical (Full): Journal of Labor Economics

Issue: 1

Volume: 23

Pages: 31-58

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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