Wage Dispersion and Equilibrium Search. Models: Some Evidence from Italy
AbstractThis paper provides a structural estimation of an equilibrium search model with on-thejob search and heterogeneity in firms productivities using a sample of Italian workers. Allowing for productivity differentials among firms, the model is able to fit the wage distribution satisfactorily. Results indicate that arrival rates of offers for workers are higher when unemployed than when employed and firms exploit their monopsnony power when setting wages. As a result, workers earn far less than their marginal product. The paper also provides an estimate of the underlying distribution of productivity across firms. Geographical stratification reveals also interesting differences in transition parameters across workers.
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Bibliographic InfoPaper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200402.
Date of creation: 2004
Date of revision:
equilibrium search models; wage dispersion; search frictions; monopsony;
Other versions of this item:
- Giovanni Sulis, 2008. "Wage Dispersion and Equilibrium Search Models: Some Evidence from Italy," LABOUR, CEIS, CEIS, vol. 22(4), pages 593-627, December.
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
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- Ceyhun Elgin & Tolga Umut Kuzubas, 2012.
"Wage-Productivity Gap in Turkish Manufacturing Sector,"
Working Papers, Bogazici University, Department of Economics
2012/03, Bogazici University, Department of Economics.
- Ceyhun ELGİN & Tolga Umut KUZUBAŞ, 2012. "Wage-Productivity Gap in Turkish Manufacturing Sector," Iktisat Isletme ve Finans, Bilgesel Yayincilik, Bilgesel Yayincilik, vol. 27(316), pages 09-31.
- Elgin, Ceyhun & Kuzubas, Tolga Umut, 2013.
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- Elgin, Ceyhun & Kuzubas, Tolga Umut, 2013. "Wage-productivity gap in OECD economies," Economics Discussion Papers, Kiel Institute for the World Economy 2013-18, Kiel Institute for the World Economy.
- Giovanni Sulis, 2012.
"Gender wage differentials in Italy: a structural estimation approach,"
Journal of Population Economics, Springer,
Springer, vol. 25(1), pages 53-87, January.
- Giovanni Sulis, 2008. "Gender Wage Differentials in Italy: A Structural Estimation Approach," LABORatorio R. Revelli Working Papers Series, LABORatorio R. Revelli, Centre for Employment Studies 74, LABORatorio R. Revelli, Centre for Employment Studies.
- G. Sulis, 2007. "Gender Wage Differentials in Italy: a Structural Estimation Approach," Working Paper CRENoS 200715, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
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