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The Importance of Bundling in a Gorman-Lancaster Model of Earnings

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  • James Heckman
  • Jose Scheinkman

Abstract

This paper considers a multisector Gorman-Lancaster linear characteristics model of earnings in which workers cannot unbundle their skills. Conditions are presented under which characteristics are uniformly priced across sectors. Empirical evidence is presented for the U.S. labour market that rejects the hypothesis of uniform pricing of characteristics.

Suggested Citation

  • James Heckman & Jose Scheinkman, 1987. "The Importance of Bundling in a Gorman-Lancaster Model of Earnings," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(2), pages 243-255.
    • Handle: RePEc:oup:restud:v:54:y:1987:i:2:p:243-255.
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    File URL: http://hdl.handle.net/10.2307/2297514
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