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Distribution of Ability and Earnings in a Hierarchical Job Assignment Model

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  • Robert M. Costrell

    (University of Massachusetts at Amherst)

  • Glenn C. Loury

    () (Institute for Economic Development, Boston University)

Abstract

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  • Robert M. Costrell & Glenn C. Loury, 2004. "Distribution of Ability and Earnings in a Hierarchical Job Assignment Model," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-135, Boston University - Department of Economics.
  • Handle: RePEc:bos:iedwpr:dp-135
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    File URL: http://www.bu.edu/econ/ied/dp/papers/dp135Loury.pdf
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    References listed on IDEAS

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    1. MacDonald, Glenn M, 1982. "Information in Production," Econometrica, Econometric Society, vol. 50(5), pages 1143-1162, September.
    2. Rothschild, Michael & Stiglitz, Joseph E., 1982. "A model of employment outcomes illustrating the effect of the structure of information on the level and distribution of income," Economics Letters, Elsevier, vol. 10(3-4), pages 231-236.
    3. Sattinger, Michael, 1979. "Differential Rents and the Distribution of Earnings," Oxford Economic Papers, Oxford University Press, vol. 31(1), pages 60-71, March.
    4. Michael Kremer, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 551-575.
    5. Sattinger, Michael, 1975. "Comparative Advantage and the Distributions of Earnings and Abilities," Econometrica, Econometric Society, vol. 43(3), pages 455-468, May.
    6. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, pages 831-880.
    7. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    8. Eric D. Gould, 2002. "Rising Wage Inequality, Comparative Advantage, and the Growing Importance of General Skills in the United States," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 105-147, January.
    9. Cornell, Bradford & Welch, Ivo, 1996. "Culture, Information, and Screening Discrimination," Journal of Political Economy, University of Chicago Press, vol. 104(3), pages 542-571, June.
    10. Teulings, Coen N, 1995. "The Wage Distribution in a Model of the Assignment of Skills to Jobs," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 280-315, April.
    11. Heckman, James J & Sedlacek, Guilherme, 1985. "Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-selection in the Labor Market," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1077-1125, December.
    12. Heckman, James J & Honore, Bo E, 1990. "The Empirical Content of the Roy Model," Econometrica, Econometric Society, vol. 58(5), pages 1121-1149, September.
    13. Sherwin Rosen, 1982. "Authority, Control, and the Distribution of Earnings," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 311-323, Autumn.
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    Cited by:

    1. Fabienne Llense, 2010. "French CEOs' Compensations: What is the Cost of a Mandatory Upper Limit?," CESifo Economic Studies, CESifo, vol. 56(2), pages 165-191, June.
    2. Schwager, Robert, 2012. "Grade inflation, social background, and labour market matching," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 56-66.
    3. Ferrall, Christopher & Salvanes, Kjell G. & Sørensen, Erik Ø., 2009. "Wages and Seniority When Coworkers Matter: Estimating a Joint Production Economy Using Norwegian Administrative Data," IZA Discussion Papers 4130, Institute for the Study of Labor (IZA).
    4. Bas Klaauw & António Dias da Silva, 2011. "Wage dynamics and promotions inside and between firms," Journal of Population Economics, Springer;European Society for Population Economics, pages 1513-1548.
    5. Ed Hopkins, 2012. "Job Market Signaling Of Relative Position, Or Becker Married To Spence," Journal of the European Economic Association, European Economic Association, vol. 10(2), pages 290-322, April.
    6. Ed Hopkins & Tatiana Kornienko, 2010. "Which Inequality? The Inequality of Endowments versus the Inequality of Rewards," American Economic Journal: Microeconomics, American Economic Association, pages 106-137.
    7. Grant, Darren, 2007. "Grades as information," Economics of Education Review, Elsevier, vol. 26(2), pages 201-214, April.
    8. Bruno Crépon & Muriel Dejemeppe & Marc Gurgand, 2005. "Counseling the Unemployed : Does it Lower Unemployment Duration and Recurrence ?," Working Papers 2005-23, Center for Research in Economics and Statistics.
    9. Bilancini, Ennio & Boncinelli, Leonardo, 2013. "Disclosure of information in matching markets with non-transferable utility," Games and Economic Behavior, Elsevier, pages 143-156.
    10. Dirk Czarnitzki & Katrin Hussinger & Cédric Schneider, 2011. "Commercializing academic research: the quality of faculty patenting," Industrial and Corporate Change, Oxford University Press, vol. 20(5), pages 1403-1437, October.
    11. Arnaud Dupuy, 2008. "The Assignment of Workers to Tasks, Wage Distribution, and Technical Change: A Critical Review," Journal of Income Distribution, Journal of Income Distribution, pages 12-36.
    12. Gregory Kurtzon, 2013. "Occupational Choice and the E¤ects of Skill Supply on Relative Wages," Working Papers 460, U.S. Bureau of Labor Statistics.
    13. Laurent Gobillon & Dominique Meurs & Sébastien Roux, 2015. "Estimating Gender Differences in Access to Jobs," Journal of Labor Economics, University of Chicago Press, vol. 33(2), pages 317-363.
    14. Heidrun C. Hoppe & Benny Moldovanu & Aner Sela, 2009. "The Theory of Assortative Matching Based on Costly Signals," Review of Economic Studies, Oxford University Press, vol. 76(1), pages 253-281.
    15. Katsuya Takii, 2007. "The Persistence of Differences in Productivity, Wages, Skill Mixes and Profits Between Firms," OSIPP Discussion Paper 07E002, Osaka School of International Public Policy, Osaka University.
    16. Bas Straathof, 2005. "Schooling inequality and the rise of research," DEGIT Conference Papers c010_012, DEGIT, Dynamics, Economic Growth, and International Trade.
    17. Bidner, Chris, 2010. "Pre-match investment with frictions," Games and Economic Behavior, Elsevier, vol. 68(1), pages 23-34, January.
    18. Bas Klaauw & António Dias da Silva, 2011. "Wage dynamics and promotions inside and between firms," Journal of Population Economics, Springer;European Society for Population Economics, pages 1513-1548.
    19. Josse Delfgaauw & Robert Dur, 2008. "Managerial Talent, Motivation, and Self-Selection into Public Management," Tinbergen Institute Discussion Papers 08-097/1, Tinbergen Institute.
    20. Delfgaauw, Josse & Dur, Robert, 2010. "Managerial talent, motivation, and self-selection into public management," Journal of Public Economics, Elsevier, pages 654-660.
    21. Wing Suen, 2007. "The comparative statics of differential rents in two-sided matching markets," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 149-158.
    22. Bilancini, Ennio & Boncinelli, Leonardo, 2014. "Instrumental cardinal concerns for social status in two-sided matching with non-transferable utility," European Economic Review, Elsevier, vol. 67(C), pages 174-189.
    23. Katsuya Takii, 2007. "The Persistence of Differences in Productivity, Wages, Skill Mixes and Profits Between Firms," Discussion Papers in Economics and Business 07-10, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    24. Anderson, Ronald C. & Reeb, David M. & Zhang, Yuzhao & Zhao, Wanli, 2013. "The efficacy of regulatory intervention: Evidence from the distribution of informed option trading," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4337-4352.

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