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Wages, Training, and Job Turnover in a Search-Matching Model

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Author Info
Nielsen, M.S.
Rosholm, M.

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Abstract

In this paper we extend a job search-matching model with firm-specific investments in training developed by Mortensen (1998) to allow for different offer arrival rates in employment and unemployment. The model by Mortensen changes the original wage posting model (Burdett and Mortensen, 1998) in two aspects. First, it provides a link between the wage posting framework and the search-matching framework (eg. Pissarides, 1990). Second, it improves the correspondence between the theoretical characterization of the endogeneously derived earnings density and the empirically observed earnings density. We subsequently estimate the model on Danish labour market data using a structural non-parametric estimation procedure. We find that the model provides a good characterization of some empirical features of the labour market.

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Publisher Info
Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number 99-03.

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Length: 49 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:clmsre:99-03

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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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Related research
Keywords: ECONOMIC MODELS ; WAGES ; TRAINING PROGRAMMES;

Other versions of this item:

Find related papers by JEL classification:
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
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
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Chéron, Arnaud & Hairault, Jean-Oliver & Langot, François, 2004. "Labor Market Institutions and the Employment-Productivity Trade-Off: A Wage Posting Approach," IZA Discussion Papers 1364, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Alok Kumar, 2004. "Inflation and the Dispersion of Real Wages," Econometric Society 2004 Far Eastern Meetings 750, Econometric Society. [Downloadable!]
    Other versions:
  3. Gary Koop, 2002. "Parametric and Nonparametric Inference in Equilibrium Job Search Models," Discussion Papers in Economics 04/14, Department of Economics, University of Leicester. [Downloadable!]
  4. Rasmus Lentz, 2003. "Optimal Unemployment Insurance in an Estimated Job Search Model with Savings," CAM Working Papers 2004-10, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
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This page was last updated on 2009-11-20.


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