Sources of earnings inequality: Estimates from an on-the-job search model of the US labor market

2010 ◽  
Vol 54 (6) ◽  
pp. 832-854 ◽  
Author(s):  
Luca Flabbi ◽  
Marco Leonardi
Keyword(s):  
Labor Market ◽  
Job Search ◽  
Earnings Inequality ◽  
Search Model ◽  
The Us

scholarly journals Social Connections and Racial Wage Inequality

2020 ◽  
Author(s):  
Nicholas H Tenev
Keyword(s):  
Wage Inequality ◽  
Job Search ◽  
Wage Gap ◽  
Social Connections ◽  
Search Model ◽  
Black Workers ◽  
The Us ◽  
Racial Wage Gap ◽  
The Difference ◽  
Individual Human

How much of the wage gap between black workers and others in the US owes to differences in jobs found through social connections? Panel data from the NLSY79 are used to estimate a job search model in which individual human capital is distinguished from social capital by comparing the wages and frequency of jobs found directly with those of jobs found through friends. Jobs found through friends tend to pay more, but this premium is lower for black workers; the difference can account for 10% of the racial wage gap.

scholarly journals Frictional Wage Dispersion in Search Models: A Quantitative Assessment

2011 ◽  
Vol 101 (7) ◽  
pp. 2873-2898 ◽  
Author(s):  
Andreas Hornstein ◽  
Per Krusell ◽  
Giovanni L Violante
Keyword(s):  
Labor Market ◽  
Large Class ◽  
Job Search ◽  
Quantitative Assessment ◽  
Search Model ◽  
Wage Dispersion ◽  
Search Models ◽  
Worker Flows ◽  
Wage Ratio ◽  
Structural Search

We propose a new measure of frictional wage dispersion: the meanmin wage ratio. For a large class of search models, we show that this measure is independent of the wage-offer distribution but depends on statistics of labor-market turnover and on preferences. Under plausible preference parameterizations, observed magnitudes for worker flows imply that in the basic search model, and in most of its extensions, frictional wage dispersion is very small. Notable exceptions are some of the most recent models of on-the-job search. Our new measure allows us to rationalize the diverse empirical findings in the large literature estimating structural search models. (JEL D81, D83, J31, J41, J64)

scholarly journals Quantifying the Contribution of Search to Wage Inequality

2014 ◽  
Vol 6 (1) ◽  
pp. 134-161 ◽  
Author(s):  
Volker Tjaden ◽  
Felix Wellschmied
Keyword(s):  
Labor Market ◽  
Wage Inequality ◽  
Job Search ◽  
Search Model ◽  
Search Frictions ◽  
Job Transitions ◽  
The Difference

We empirically establish that one-third of job transitions leads to wage losses. Using a quantitative on-the-job search model, we find that 60 percent of them are movements down the job ladder. Accounting for them, our baseline calibration matches the large residual wage inequality in US data while attributing only 13.7 percent of overall wage inequality to the presence of search frictions in the labor market. We can trace the difference between ours and previous much higher estimates to our explicit modeling of nonvalue improving job-to-job transitions. (JEL J24, J31, J64)

Precarious Work and Young Workers in the United States

2018 ◽  
Author(s):  
Arne L. Kalleberg
Keyword(s):  
Labor Market ◽  
The United States ◽  
Young Workers ◽  
Severe Problem ◽  
Precarious Work ◽  
The Great Recession ◽  
The Us ◽  
Training Opportunities ◽  
And Training

This chapter discusses how the growth of precarious work and the polarization of the US labor market have produced major problems for the employment experiences of young workers. A prominent indicator of young workers’ difficulties in the labor market has been the sharp increase in their unemployment rates since the Great Recession. Another, equally if not more severe, problem faced by young workers today is the relatively low quality of the jobs that they were able to get. Other problems include the exclusion of young workers from the labor market and from education and training opportunities; the inability to find jobs that utilize their education, training, and skills; and the inability to obtain jobs that provide them with an opportunity to get a foothold in a career that would lead to progressively better jobs and thus be able to construct career narratives.

scholarly journals Race and Networks in the Job Search Process

2019 ◽  
Vol 84 (6) ◽  
pp. 983-1012 ◽  
Author(s):  
David S. Pedulla ◽  
Devah Pager
Keyword(s):  
Social Networks ◽  
Labor Market ◽  
African Americans ◽  
Racial Disparities ◽  
Job Search ◽  
Search Process ◽  
Job Seekers ◽  
Employment Opportunities ◽  
Black And White ◽  
Job Offers

Racial disparities persist throughout the employment process, with African Americans experiencing significant barriers compared to whites. This article advances the understanding of racial labor market stratification by bringing new theoretical insights and original data to bear on the ways social networks shape racial disparities in employment opportunities. We develop and articulate two pathways through which networks may perpetuate racial inequality in the labor market: network access and network returns. In the first case, African American job seekers may receive fewer job leads through their social networks than white job seekers, limiting their access to employment opportunities. In the second case, black and white job seekers may utilize their social networks at similar rates, but their networks may differ in effectiveness. Our data, with detailed information about both job applications and job offers, provide the unique ability to adjudicate between these processes. We find evidence that black and white job seekers utilize their networks at similar rates, but network-based methods are less likely to lead to job offers for African Americans. We then theoretically develop and empirically test two mechanisms that may explain these differential returns: network placement and network mobilization. We conclude by discussing the implications of these findings for scholarship on racial stratification and social networks in the job search process.

Parental leave length, social norms, and female labor market re-entry frictions

2018 ◽  
Vol 39 (4) ◽  
pp. 600-620 ◽  
Author(s):  
Vojtech Bartoš ◽  
Barbara Pertold-Gebicka
Keyword(s):  
Labor Market ◽  
Social Norms ◽  
Job Search ◽  
Social Norm ◽  
Parental Leave ◽  
Human Resource Managers ◽  
Content Type ◽  
Job Applicant ◽  
Employment Gaps ◽  
The Difference

Purpose The purpose of this paper is to identify the role of employers in creating employment gaps among women returning to the labor market after parental leaves of different durations. Design/methodology/approach The authors use a controlled correspondence field experiment that orthogonally manipulates parental leave length and the quality of fictitious female job candidates. The experiment is complemented with a survey among human resource managers. Findings High-quality candidates receive more interview invitations when applying after a short parental leave, while low-quality (LQ) candidates receive more interview invitations when applying after a typical three years long parental leave. Survey results suggest that the difference in invitations between short and typical leave treatments is driven by a social norm that mothers should stay home with children younger than three. Productivity gains from employing a LQ job applicant with a shorter career break might not be high enough to outweigh the adverse social norm effect. Social implications The presented results point toward the strong effect of prevailing social norms on job search prospects of women returning to the labor market after parental leave. Originality/value A correspondence experiment has not been used before to study the relationship between time spent on leave and the labor market prospects of mothers. It also extends research on social norms to the domain of hiring decisions.

An Empirical Equilibrium Job Search Model With Search on the Job and Heterogeneous Workers and Firms

1999 ◽  
Vol 40 (4) ◽  
pp. 1039-1074 ◽  
Author(s):  
Christian Bontemps ◽  
Jean-Marc Robin ◽  
Gerard J. Van den Berg
Keyword(s):  
Job Search ◽  
Search Model

scholarly journals Searching For Better Prospects: Endogenizing Falling Job Tenure and Private Pension Coverage

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
Leora Friedberg ◽  
Michael T Owyang ◽  
Tara M Sinclair
Keyword(s):  
Job Search ◽  
Search Costs ◽  
Private Pension ◽  
Search Model ◽  
Defined Benefit ◽  
Job Tenure ◽  
Relative Wages ◽  
Pension Coverage ◽  
New Evidence ◽  
General Conditions

Abstract Recent declines in job tenure have coincided with a shift away from traditional defined benefit (DB) pensions, which reward long tenure. New evidence also points to an increase in job-to-job movements by workers, and we document gains in relative wages of job-to-job movers over a similar period. We develop a search model in which firms may offer tenure-based contracts like DB pensions to reduce the incidence of costly on-the-job search by workers. Either reduced search costs or an increase in the probability of job matches can, under fairly general conditions, lower the value of deterring search and the use of DB pensions.

scholarly journals Brain waste? Educated immigrants in the US labor market

2008 ◽  
Vol 87 (2) ◽  
pp. 255-269 ◽  
Author(s):  
Aaditya Mattoo ◽  
Ileana Cristina Neagu ◽  
Çağlar Özden
Keyword(s):  
Labor Market ◽  
The Us
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