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Wage Dispersion and Recruiting Selection

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  • Benjamin Villena-Roldan

    (University of Chile)

Abstract

The model also predicts (i) residual wage dispersion of level wages increasing in productivity; (ii) residual wage dispersion of log wages decreasing in productivity; (iii) a negative relation between unemployment and residual wage dispersion and (iv) positive relation between productivity dispersion and residual wage dispersion. To assess these empirical predictions, I calibrate the model to match the mean and variance of the log wages in CPS data 1985-2006. The model's predictions are strongly supported in the data.

Suggested Citation

  • Benjamin Villena-Roldan, 2010. "Wage Dispersion and Recruiting Selection," 2010 Meeting Papers 529, Society for Economic Dynamics.
    • Handle: RePEc:red:sed010:529
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    1. Benjamín Villena Roldán, 2010. "Aggregate Implications of Employer Search and Recruiting Selection," Documentos de Trabajo 271, Centro de Economía Aplicada, Universidad de Chile.
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    Cited by:

    1. Pizzo, Alessandra & Villena-Roldán, Benjamin, 2024. "Labor markets, wage Inequality, and hiring selection," MPRA Paper 120281, University Library of Munich, Germany.
    2. Benjamín Villena Roldán, 2010. "Aggregate Implications of Employer Search and Recruiting Selection," Documentos de Trabajo 271, Centro de Economía Aplicada, Universidad de Chile.
    3. Bemjamin Villena-Roldan, 2009. "Aggregate Implications of Employer Search and Recruiting Selection," 2009 Meeting Papers 97, Society for Economic Dynamics.

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