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Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation

Abstract : In this article we develop an equilibrium search model with a continuous distribution of firm productivity types within a given labor market. We characterize equilibrium, derive expressions for the endogenous equilibrium wage distributions, and characterize the set of wage distributions that can 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 with those from a French panel data set of firms. The results are informative on the degree to which firms exploit search frictions.
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https://hal.archives-ouvertes.fr/hal-00357755
Contributor : Jean-Marc Robin <>
Submitted on : Sunday, February 1, 2009 - 6:38:20 PM
Last modification on : Friday, July 3, 2020 - 9:51:37 AM

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Christian Bontemps, Jean-Marc Robin, Gérard J. van den Berg. Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation. International Economic Review, Wiley, 2000, 41 (2), pp.305-358. ⟨10.1111/1468-2354.00066⟩. ⟨hal-00357755⟩

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