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An Equilibrium Model of Wage Dispersion with Sorting

Author

Listed:
  • Jesper Bagger

    (University of Aarhus)

  • Rasmus Lentz

    (University of Wisconsin)

Abstract

The paper presents a general equilibrium model with search on the job. Workers differ in terms of skill levels and firms differ in terms of productivity. Depending on the production function characteristics, sorting in matching may occur. The paper estimates the model on Danish match data and presents results on sources of wage dispersion.

Suggested Citation

  • Jesper Bagger & Rasmus Lentz, 2008. "An Equilibrium Model of Wage Dispersion with Sorting," 2008 Meeting Papers 271, Society for Economic Dynamics.
    • Handle: RePEc:red:sed008:271
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    Citations

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    Cited by:

    1. Borowczyk-Martins, Daniel & Bradley, Jake & Tarasonis, Linas, 2018. "Racial discrimination in the U.S. labor market: Employment and wage differentials by skill," Labour Economics, Elsevier, vol. 50(C), pages 45-66.
    2. Luca Paolo Merlino & Pierpaolo Parrotta & Dario Pozzoli, 2018. "Gender Differences in Sorting," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(4), pages 671-709, October.
    3. Jeremy Lise & Costas Meghir & Jean-Marc Robin, 2013. "Mismatch, Sorting and Wages Dynamics," Working Papers hal-03473908, HAL.
    4. repec:spo:wpmain:info:hdl:2441/6ggbvnr6munghes9od0s108ro is not listed on IDEAS
    5. Jan Eeckhout & Philipp Kircher, 2011. "Identifying Sorting--In Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(3), pages 872-906.
    6. Kyle Herkenhoff & Gordon Phillips & Ethan Cohen-Cole, 2016. "How Credit Constraints Impact Job Finding Rates, Sorting & Aggregate Output," Working Papers 16-25, Center for Economic Studies, U.S. Census Bureau.
    7. Rafael Lopes de Melo, 2012. "Firm Heterogeneity, Sorting and the Minimum Wage," 2012 Meeting Papers 611, Society for Economic Dynamics.
    8. repec:hal:spmain:info:hdl:2441/6ggbvnr6munghes9od0s108ro is not listed on IDEAS
    9. Luca Paolo Merlino & Pierpaolo Parrotta & Dario Pozzoli, 2012. "Assortative Matching Gender," Working Papers ECARES ECARES 2012-040, ULB -- Universite Libre de Bruxelles.

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