Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123406 
Year of Publication: 
2010
Series/Report no.: 
WWZ Discussion Paper No. 2010/02
Publisher: 
University of Basel, Center of Business and Economics (WWZ), Basel
Abstract: 
This paper addresses the large degree of frictional wage dispersion in US data. The standard job matching model without on-the-job search cannot replicate this pattern. With on-the-job search, however, unemployed job searchers are more will- ing to accept low wage offers since they can continue to seek for better employment opportunities. This explains why observably identical workers may be paid very differently. Therefore, we examine the quantitative implications of on-the-job search in a stochastic job matching model. Our key result is that the inclusion of variable on-the-job search increases the degree of frictional wage dispersion by an order of a magnitude.
Subjects: 
Matching
On-the-job Search
Wage Dispersion
JEL: 
E24
J31
J64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
627.11 kB





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