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

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Author Info

  • Rosholm, Michael

    ()
    (Aarhus University)

  • Svarer, Michael

    ()
    (Aarhus University)

Abstract

In this paper we extend a job search-matching model with firm-specific investments in training developed by Mortensen (2000) 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 labor market.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 223.

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Length: 57 pages
Date of creation: Dec 2000
Date of revision:
Handle: RePEc:iza:izadps:dp223

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Related research

Keywords: wage dispersion; matching; Search equilibrium; firm-specific human capital;

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Cited by:
  1. Alok Kumar, 2004. "Inflation and the Dispersion of Real Wages," Econometric Society 2004 Far Eastern Meetings 750, Econometric Society.
  2. Christensen, Bent Jesper & Mortensen, Dale & Neumann, George R. & Werwatz, Axel, 2000. "On the job search and the wage distribution," SFB 373 Discussion Papers 2000,108, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  3. Guerrazzi, Marco, 2014. "Workforce ageing and the training propensity of Italian firms: cross-sectional evidence from the INDACO survey," MPRA Paper 56826, University Library of Munich, Germany.
  4. Chéron, Arnaud & Hairault, Jean-Olivier & 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).

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