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An Equilibrium Search Model with Capital Accumulation

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  • Korsholm, L.
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    Abstract

    We extend the basic equilibrium search model of Burdett-Mortnesen with a human capital accumulating wage function and solve for the new equilibrium distribution of wages. We find an equilibrium distribution of earned wages with no upper bound of the support and with density having a decreasing tail. We develop methods for estimating the wage growth parameter super-consistently at rate n and we implement our method on a data example.

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    Bibliographic Info

    Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number 98-13.

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    Date of creation: 1998
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    Handle: RePEc:fth:clmsre:98-13

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    Postal: Danmark; Centre for Labour Market and Social Research. Science Park Aarhus Wieds Vej 10C, 8000 Aarhus C, Danmark
    Phone: +45 8942 2350
    Fax: +45 8942 2365
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    Web page: http://www.cls.dk/
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    Keywords: UNEMPLOYMENT ; WAGES ; MODELS ; JOB SEARCHING Aarhus C; Danmark.40p.;

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