Equilibrium search models require unobserved heterogeneity in productivityto fit observed wage distribution data, but provide no guidance about the location parameter of the heterogeneity. In this paper we show that the location of the productivity heterogeneity implies a mode in a kernel density estimate of the wage distribution.
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Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number
96-12.
Length: 20 pages Date of creation: 1996 Date of revision: Handle: RePEc:fth:clmsre:96-12
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Find related papers by JEL classification: C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs J4 - Labor and Demographic Economics - - Particular Labor Markets
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