Author: Audra J. BowlusPublisher: London : Department of Economics, University of Western Ontario
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 40
Book Description
Fitting Equilibrium Search Models to Labor Market Data
Author: Audra J. BowlusPublisher: London : Department of Economics, University of Western Ontario
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 40
Book Description
Using Firm Data to Asses the Performance of Equilibrium Search Models of the Labor Market
Author: Gerard J. van den BergPublisher:
ISBN:
Category :
Languages : en
Pages : 31
Book Description
Using Firm Data to Assess the Performance of Equilibrium Search Models of the Labor Market
Author: Gerard J. van den BergPublisher:
ISBN:
Category :
Languages : en
Pages : 31
Book Description
Labor Market Policies in an Equilibrium Search Model
Author: Fernando AlvarezPublisher:
ISBN:
Category : Labor market
Languages : en
Pages : 35
Book Description
Identifying Equilibrium Models of Labor Market Sorting
Author: Marcus HagedornPublisher:
ISBN:
Category :
Languages : en
Pages : 63
Book Description
Does the market allocate the right workers to the right jobs? Since observable (to economists) variables account for only a small fraction of the wage variance in the data, to answer this question it is essential to study assortative matching between employers and employees based on their unobserved characteristics. This paper enables this line of research. We show theoretically that all parameters of the classic model of sorting based on absolute advantage in Becker (1973) with search frictions can be identified using only matched employer-employee data on wages and labor market transitions. In particular, these data are sufficient to assess whether matching between workers and firms is assortative, whether sorting is positive or negative, and to measure the potential effect on output from moving any given worker to any given employer in the economy. We provide computational algorithms that implement our identification strategy given the limitations of the available data sets. Finally, we extend our identification and implementation strategies to the commonly used class of models of sorting based on comparative advantage and provide a test that discriminates between these models.
Identifying equilibrium models of labor market sorting
Author: Marcus HagedornPublisher:
ISBN:
Category : Economics
Languages : en
Pages :
Book Description
Does the market allocate the right workers to the right jobs? Since observable (to economists) variables account for only a small fraction of the wage variance in the data, to answer this question it is essential to study assortative matching between employers and employees based on their unobserved characteristics. This paper enables this line of research. We show theoretically that all parameters of the classic model of sorting based on absolute advantage in Becker (1973) with search frictions can be identified using only matched employer-employee data on wages and labor market transitions. In particular, these data are sufficient to assess whether matching between workers and firms is assortative, whether sorting is positive or negative, and to measure the potential effect on output from moving any given worker to any given employer in the economy. We provide computational algorithms that implement our identification strategy given the limitations of the available data sets. Finally, we extend our identification and implementation strategies to the commonly used class of models of sorting based on comparative advantage and provide a test that discriminates between these models.
Essays on Equilibrium Labor Market Sorting
Author: Tzuo Hann LawPublisher:
ISBN:
Category :
Languages : en
Pages : 326
Book Description
The importance of time invariant, but unobserved characteristics of workers and their employers in the determination of wages is well known. This suggests that models of (un)employment featuring permanent worker and firm types are crucial for our understanding of labor markets. While such models are numerous, it was thought that even very simple ones were fundamentally not identifiable with wage data alone. Hence, the empirical content of these models were largely a mystery. With that, our understanding of permanent unobserved heterogeneity has been restricted to statistical models with limited economic interpretation. In the first chapter of my dissertation (joint with Marcus Hagedorn and Iourii Manovskii), I overcome this fundamental problem. I assess the empirical content of equilibrium models of labor market sorting based on unobserved (to economists) characteristics. Specifically, I develop quantitative tools to identify and estimate a wide class of models of labor market sorting. I not only find that many models are likely completely identifiable but that reliable estimates of key model primitives can be obtained using routinely available matched employer-employee datasets. In the second chapter of my dissertation (with Kory Kantenga), I apply the framework developed in the first chapter to study the role of worker and employer heterogeneity in driving German wage inequality between 1993 and 2007. The model I earlier developed fits overall wage variance, the wage function, search frictions, unemployment levels and the degree of sorting between workers and firms. The fit of the model is comparable to non-structural approaches which utilize many more degrees of freedom. In decomposing the rise in German wage inequality, I find that changes in the non-parametrically estimated production function and the sorting between worker and firm types that it induces accounts for most of the increase in German wage inequality. Finally, by testing whether log wage differences between employees who are coworkers at two distinct firms are constant, I show that the commonly assumed log additive separability approximation of log wages is rejected. Finally, the estimated model is capable of reproducing the degree of non additive separability in the data.
Labor Search and Matching in Macroeconomics
Author: Eran YashivSearch Theory and Unemployment
Author: Stephen A. WoodburyPublisher: Springer Science & Business Media
ISBN: 9401002355
Category : Business & Economics
Languages : en
Pages : 244
Book Description
Search Theory and Unemployment contains nine chapters that survey and extend the theory of job search and its application to the problem of unemployment. The volume ranges from surveys of job search theory that take microeconomic and macroeconomic perspectives to original theoretical contributions which focus on the externalities arising from non-sequential search and search under imperfect information. It includes a clear and authoritative survey of econometric methods that have been developed to estimate models of job search, as well as two lucid contributions to the empirical search literature. Finally, it includes a study that reviews and extends the literature on optimal unemployment insurance and concludes with an appraisal of the influence of search theory on the thinking of macroeconomic policymakers.
Estimation of Equilibrium Wage Distributions with Heterogeneity
Author: Audra J. BowlusPublisher:
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 40
Book Description