Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/312002 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17563
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We model monopsony on the labor market using a separable matching model a la Choo and Siow (2006). We propose a simple method that estimates 1) the multidimensional determinants of productivity and non-wage preferences separately and 2) the variance of unobserved heterogeneity on both sides of the market. Simulations show the effectiveness of the method. An application to Portuguese data reveals that the variance of unobserved heterogeneity is one order of magnitude larger for workers than for firms and represents about 29% of the variance in nonwage preferences of workers, while observed characteristics of workers and firms explain 71%.
Subjects: 
monopsony
amenities
matching models
unobserved heterogeneity
Pseudo-Poisson Maximum Likelihood
JEL: 
C25
C78
J28
J31
J32
Document Type: 
Working Paper

Files in This Item:
File
Size
558.85 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.