Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Frictional Wage Dispersion in Search Models: A Quantitative Assessment

Andreas Hornstein, Per Krusell and Giovanni L. Violante
The American Economic Review
Vol. 101, No. 7 (DECEMBER 2011), pp. 2873-2898
Stable URL: http://www.jstor.org/stable/41408724
Page Count: 26
  • Download ($10.00)
  • Subscribe ($19.50)
  • Cite this Item
Frictional Wage Dispersion in Search Models: A Quantitative Assessment
Preview not available

Abstract

We propose a new measure of frictional wage dispersion: the meanmin wage ratio. For a large class of search models, we show that this measure is independent of the wage-offer distribution but depends on statistics of labor-market turnover and on preferences. Under plausible preference parameterizations, observed magnitudes for worker flows imply that in the basic search model, and in most of its extensions, frictional wage dispersion is very small Notable exceptions are some of the most recent models of on-the-job search. Our new measure allows us to rationalize the diverse empirical findings in the large literature estimating structural search models.

Page Thumbnails

  • Thumbnail: Page 
2873
    2873
  • Thumbnail: Page 
2874
    2874
  • Thumbnail: Page 
2875
    2875
  • Thumbnail: Page 
2876
    2876
  • Thumbnail: Page 
2877
    2877
  • Thumbnail: Page 
2878
    2878
  • Thumbnail: Page 
2879
    2879
  • Thumbnail: Page 
2880
    2880
  • Thumbnail: Page 
2881
    2881
  • Thumbnail: Page 
2882
    2882
  • Thumbnail: Page 
2883
    2883
  • Thumbnail: Page 
2884
    2884
  • Thumbnail: Page 
2885
    2885
  • Thumbnail: Page 
2886
    2886
  • Thumbnail: Page 
2887
    2887
  • Thumbnail: Page 
2888
    2888
  • Thumbnail: Page 
2889
    2889
  • Thumbnail: Page 
2890
    2890
  • Thumbnail: Page 
2891
    2891
  • Thumbnail: Page 
2892
    2892
  • Thumbnail: Page 
2893
    2893
  • Thumbnail: Page 
2894
    2894
  • Thumbnail: Page 
2895
    2895
  • Thumbnail: Page 
2896
    2896
  • Thumbnail: Page 
2897
    2897
  • Thumbnail: Page 
2898
    2898