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Wage Differentials, Employer Size, and Unemployment
Abstract
The unique equilibrium solution to a game in which a continuum of individual employers choose permanent wage offers and a continuum of workers search by sequentially sampling from the set of offers is characterized. Wage dispersion is a robust outcome provided that workers search while employed as well as when unemployed. The unique nondegenerate equilibrium distribution of wage offers is constructed for three cases: (1) identical workers and employers, (2) identical employers and an atomless distribution of worker supply prices, and (3) identical workers and an atomless distribution of job productivities. Copyright 1998 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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Citations
Cited by
Looking into the Black Box: A Survey of the Matching Function
Petrongolo, B., & Pissarides, C. A. (2001) · Journal of Economic Literature · doi:10.1257/jel.39.2.390 · Cited by 2,384
Search-Theoretic Models of the Labor Market: A Survey
Rogerson, R., Shimer, R., & Wright, R. (2005) · Journal of Economic Literature · doi:10.1257/002205105775362014 · Cited by 1,051
Firms and Labor Market Inequality: Evidence and Some Theory
Card, D., Cardoso, A. R., Heining, J., & Kline, P. (2018) · Journal of Labor Economics · doi:10.1086/694153 · Cited by 919
Recessions and the Costs of Job Loss
Davis, S. J., & von Wachter, T. (2011) · Brookings Papers on Economic Activity · doi:10.1353/eca.2011.0016 · Cited by 533
Imperfect Competition in the Labor Market
Alan, M. (2011) · Handbook of Labor Economics · doi:10.1016/s0169-7218(11)02409-9 · Cited by 329
Metadata
- Authors
- Burdett, K., & Mortensen, D. T.
- Venue
- International Economic Review
- Publisher
- JSTOR
- Published
- 1998-05
- Volume
- 39
- Issue
- 2
- Pages
- 257
- ISSN
- 0020-6598 (ISSN-L)
- OpenAlex
- W2082312367
- Cited by
- 1,809
- References
- 0
- FWCI
- 49.54
- Type
- journal article
- Language
- en
- Open access
- closed
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Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
