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Equilibrium Search with Continuous Productivity Dispersion: Theory and Non-Parametric Estimation


  • Bontemps, C.
  • Robin, J.M.
  • van den Berg, G.J.


In this paper we theoretically and empirically analyze equilibrium search models of the labor market. The Burdett-Mortensen equilibrium search model is generalized by allowing for continuous distributions of firm productivity types within a given labor market. We characterize equilibrium and derive expressions for the endogenous equilibrium wage distributions. We then characterize the full set of wage (offer) distributions that can in principle be generated by the model. We develop a structural nonparametric estimation method for the productivity distribution. We estimate the model using French longitudinal survey data on labor supply, and we compare the results on the relation between productivities and wages to those obtained using a French panel dataset of firms.

Suggested Citation

  • Bontemps, C. & Robin, J.M. & van den Berg, G.J., 1998. "Equilibrium Search with Continuous Productivity Dispersion: Theory and Non-Parametric Estimation," Papers 98-07, Centre for Labour Market and Social Research, Danmark-.
  • Handle: RePEc:fth:clmsre:98-07

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    References listed on IDEAS

    1. Mark Yuying An & Roberto Ayala, 1996. "Nonparametric Estimation of a Survivor Function with Across- Interval-Censored Data," Econometrics 9611003, EconWPA.
    2. Mark Yuying An, 1996. "Semiparametric Estimation of Willingness to Pay Distributions," Econometrics 9611001, EconWPA.
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    More about this item


    ECONOMIC EQUILIBRIUM ; LABOUR MARKET ; WAGES ; MONOPOLIES Research. Science Park Aarhus Wieds Vej 10C; 8000 Aarhus C; Danmark. 36p.;

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation


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