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Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation

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Author Info

  • Christian Bontemps
  • Jean-Marc Robin

    (Laboratoire d'Economie Appliquée, INRA)

  • Gérard J. Van Den Berg
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    Abstract

    In this article we develop an equilibrium search model with a continuous distribution of firm productivity types within a given labor market. We characterize equilibrium, derive expressions for the endogenous equilibrium wage distributions, and characterize the set of wage distributions that can be generated by the model. We develop a structural nonparametric estimation method for the productivity distribution. We estimate the model using French longitudinal survey data on labor supply, and we compare the results with those from a French panel data set of firms. The results are informative on the degree to which firms exploit search frictions.

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    File URL: http://hal.archives-ouvertes.fr/hal-00357755
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    Bibliographic Info

    Paper provided by Institut National de la Recherche Agronomique, France in its series Working Papers with number 249986.

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    Length: 305-358
    Date of creation: 2000
    Date of revision:
    Publication status: Published in International Economic Review
    Handle: RePEc:inr:wpaper:249986

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    Related research

    Keywords: equilibrium search model;

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