Matching, sorting and wages
By C. Meghir, J. Robin, Jeremy Lise. 2011
191 citations recorded by the source corpus.
We develop an empirical search-matching model which is suitable for analyzing the wage, employment and welfare impact of regulation in a labor market with heterogeneous workers and jobs. To achieve this we develop an equilibrium model of wage determination and employment which extends the current literature on equilibrium wage determination with matching and provides a bridge between some of the most prominent macro models and microeconometric research. The model incorporates productivity shocks, long-term contracts, on-the-job search and counter-offers. Importantly, the model allows for the possibility of assortative matching between workers and jobs due to complementarities between worker and job characteristics. We use the model to estimate the potential gain from optimal regulation and we consider the potential gains and redistributive impacts from optimal unemployment benefit policy. Here optimal policy is defined as that which maximizes total output and home production, accounting for the various constraints that arise from search frictions. The model is estimated on the NLSY using the method of moments.
Subfields: Economics and Econometrics, Marketing
View Paper: https://www.semanticscholar.org/paper/8cc1d1e8b449667ff054450b863fb5f17d14d948
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Citations in the corpus
- On-the-Job Search and Precautionary Savings (2013, background): “Understanding these joint dynamics within an equilibrium search model is central to my research agenda, and substantial progress has already been made in Lise et al. (2012).”
- Estimation of a Roy/Search/Compensating Differential Model of the Labor Market (2020, unknown): “Postel-Vinay and Robin allow for absolute advantage only in the sense that ability is one dimension and the relative productivity of two workers does not vary across firms. By contrast, we allow for a match specific productivity meaning that some workers match better with some firms (the Roy compone”
- Identifying Sorting: In Theory (2009, unknown): “(9) In the case of f−(x, y) any wage w(x, y) in W (x, y) satisfies αx(1− y) − α 2 (1− y) ≤ w(x, y)− h(x) ≤ α 2 x, (10) which is identical to (9) if we misinterpret the types as ŷ = 1− y.”
- Earnings Inequality and the Minimum Wage: Evidence from Brazil (2017, background): “See, for example, Shimer and Smith (2000); Lise et al. (2016); Hagedorn et al.”