Frictional Wage Dispersion in Search Models: A Quantitative Assessment

By A. Hornstein, Per Krusell, Giovanni L. Violante. 2011

373 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Marketing

View Paper: https://www.semanticscholar.org/paper/f167dca915cd723c844392ba365abcb269067c0e

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Citations in the corpus

Searching for Job Security and the Consequences of Job Loss (2021, methodology): “Hornstein et al. (2011) set λ0 = .43 and λ1 ∈ [.07, .13] to be consistent with US labor market flows in the context of a Burdett (1978) job-ladder model. for all α ∈ [0, 1), we have that the social surplus is strictly smaller than the bilateral surplus, SP (θ) < S(θ) ∀θ s.t. SP (θ) > 0 (18) Thus,…”
Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy (2016, neutral): “l ne I(z; l)wh(z; l) l + h1 e I(z; l)iwf (z; l)lo f(z; l)dldz: (36)”
A Contribution to the Empirics of Reservation Wages (2016, positive): “We follow Feldstein and Poterba (1984) and focus our analysis throughout the paper on the reservation wage ratio, defined as the reservation wage divided by the previous wage, to control for individual‐level heterogeneity.(18) Figure 3 shows the kernel density of the log of the reservation wage rati”
Opening the Black Box of the Matching Function: The Power of Words (2020, background): “On the theoretical side, a recent paper (Hornstein et al., 2011) argues that a large residual wage variance is inconsistent with basic search models (i.”
Firms and Labor Market Inequality: Evidence and Some Theory (2018, neutral): “By contrast, Hornstein et al. (2011) show that a wide class of search models have difficulty generating mean wages more than 5% above the lowest offered wage.”
Estimation of a Roy/Search/Compensating Differential Model of the Labor Market (2020, neutral): “Note that Hornstein, Krusell, and Violante (2011) point out that search models without onthe-job search have a hard time matching both the observed wage distribution and the fact that unemployed workers rapidly transition out of unemployment.”
Minimum Wage Shocks, Employment Flows, and Labor Market Frictions (2012, background): “[27] Hornstein, Andreas, Per Krusell and Giovanni L.”
Learning Your Comparative Advantages (2014, background): “…an occupation, in contrast to our setup which matches the shape of the within-occupation cross-sectional wage distribution, including its well-known fat right tail; indeed empirical evidence suggests that substantial wage dispersion remains within occupational groups (Hornstein et al. (2007)).”
Monopsony Power in Migrant Labor Markets: Evidence from the United Arab Emirates (2016, background): “For example, Manning (2003), Cahuc, Postel-Vinay, and Robin (2006), and Hornstein, Krusell, and Violante (2011), while methodologically very diverse, all suggest that job mobility is important for explaining wage variation.2 However, despite the strong predictions made by economic theory,…”
Uncertainty, Productivity and Unemployment in the Great Depression (2011, background): “Hornstein et al. (2007) report that standard calibrations of search-and-matching models without on-the-job search cannot generate much dispersion in wages.”
Joint-Search Theory: New Opportunities and New Frictions (2009, background): “By symmetry of T , from (8) we have that T ( (w1) ; w1) = (w1), or T w2; 1 (w2) = 1 (w2) which compared to (11) yields the desired result.”