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Estimation of the wage offer distribution using both accepted and rejected offers

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  • Guo, Junjie

Abstract

This paper estimates the wage offer distribution using workers who received multiple offers in a short period of time, including both accepted and rejected offers. We show that, after accounting for worker heterogeneity and measurement error, each wage offer is a random draw from the same distribution, and a normal distribution with a standard deviation of 0.137 is consistent with data. The dispersion is smaller than most estimates in the literature, increasing in the unemployment rate for workers without a bachelor’s degree, but not significantly related to a worker’s age or employment status.

Suggested Citation

  • Guo, Junjie, 2025. "Estimation of the wage offer distribution using both accepted and rejected offers," Labour Economics, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:labeco:v:96:y:2025:i:c:s0927537125000806
    DOI: 10.1016/j.labeco.2025.102756
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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