Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/91684
Authors: 
Carrillo-Tudela, Carlos
Year of Publication: 
2012
Series/Report no.: 
ISER Working Paper Series 2012-23
Abstract: 
This paper constructs and quantitatively assesses an equilibrium search model with on-the- job search and general human capital accumulation. In the model workers differ in their innate abilities and firms in their productivities. Wages are dispersed because of search frictions and workers' productivity differentials. Using the (log) wage variance decomposition implied by the model I show that wage inequality among low skilled workers is mostly driven by differ- ences in their productivities. Among medium skilled workers, productivity differentials and search frictions are equally important. The model reproduces the observed cross-sectional wage distribution, the average wage-experience profile and the observed Mean-min ratio.
Subjects: 
Job search
human capital accumulation
wage dispersion
turnover
JEL: 
J63
J64
J41
J42
Document Type: 
Working Paper

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