Modeling Matched Job-Worker Flows
What can one infer about labor market flows from matched employer- employee panel data? The purpose of this paper is to sketch possible answers to this question. A general but simple labor market equilibrium model of hire and separation flows is developed in the paper. The model embodies the hypothesis that worker productivity differs across employers and that worker and employer flows reflect responses to these differences in a labor market characterized by friction. In the modeled market, each agent acts optimally taking as given the wage offer distribution and market tightness and these in turn are determined by their collective action. The existence of a labor market equilibrium is established under two different wage determination models: rent sharing and wage posting. A demonstration that market flow parameters, search and recruiting effort functions, and the equilibrium wage distribution can be estimated with matched job-work flow data is the principal contribution of the paper.
|Date of creation:||01 Aug 2000|
|Date of revision:|
|Contact details of provider:|| Phone: 1 212 998 3820|
Fax: 1 212 995 4487
Web page: http://www.econometricsociety.org/pastmeetings.asp
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mortensen, Dale T. & Pissarides, Christopher A., 1999.
"Job reallocation, employment fluctuations and unemployment,"
Handbook of Macroeconomics,
in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 18, pages 1171-1228
- Dale T. Mortensen & Christopher A. Pissarides, 1999. "Job Reallocation, Employment Fluctuations and Unemployment," CEP Discussion Papers dp0421, Centre for Economic Performance, LSE.
- Bingley, Paul & Eriksson, Tor & Werwatz, Axel & Westergård-Nielsen, Niels, 1999.
"Beyond manucentrism: Some fresh facts about job and worker flows,"
SFB 373 Discussion Papers
1999,74, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Bingley, P. & Eriksson, T. & Werwatz, A. & Westergard-Nielsen, N., 1999. "Beyond "Manucentrism" - Some Fresh Facts about Job and Worker Flows," Papers 99-09, Centre for Labour Market and Social Research, Danmark-.
- Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-73, May.
- Giuseppe Bertola & Ricardo J. Caballero, 1994. "Cross-Sectional Efficiency and Labour Hoarding in a Matching Model of Unemployment," Review of Economic Studies, Oxford University Press, vol. 61(3), pages 435-456.
When requesting a correction, please mention this item's handle: RePEc:ecm:wc2000:1493. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.