Quantifying the Contribution of Search to Wage Inequality
2014 ◽
Vol 6
(1)
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pp. 134-161
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Keyword(s):
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)
2018 ◽
Vol 39
(4)
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pp. 600-620
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Keyword(s):
2010 ◽
Vol 54
(6)
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pp. 832-854
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2011 ◽
Vol 101
(7)
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pp. 2873-2898
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Keyword(s):
2020 ◽
Vol 240
(1)
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pp. 19-49
Keyword(s):
Keyword(s):
2019 ◽
Vol 84
(6)
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pp. 983-1012
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Keyword(s):
An Empirical Equilibrium Job Search Model With Search on the Job and Heterogeneous Workers and Firms
1999 ◽
Vol 40
(4)
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pp. 1039-1074
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