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Can the Mortensen-Pissarides Model with Productivity Changes Explain U.S. Wage Inequality?

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Author Info
Linda Y. Wong (Binghamton University)

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Abstract

This article examines whether the Mortensen-Pissarides matching model with productivity changes can explain the time pattern of wage inequality. The main finding is that the model produces counterfactual results. The main source of failure seems to be the exogenous matching function and/or the exogenous surplus share, neither of which allows firms to use wage policies to direct workers' searches.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 21 (2003)
Issue (Month): 1 (January)
Pages: 70-105
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Handle: RePEc:ucp:jlabec:v:21:y:2003:i:1:p:70-105

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  1. Xavier Cuadras Morató & Xavier Mateos-Planas, 2006. "Wage inequality and unemployment with overeducation," Economics Working Papers 938, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  2. repec:bep:maccon:v:6:y:2006:i:1:p:1340-1340 is not listed on IDEAS
  3. Michael Sattinger, 2003. "Capital Intensity, Neutral Technological Change, and Earnings Inequality," Discussion Papers 03-05, University at Albany, SUNY, Department of Economics. [Downloadable!]
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This page was last updated on 2009-11-21.

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