Skip to Main content Skip to Navigation
Journal articles

Matching, Sorting and Wages

Abstract : We develop an empirical search-matching model with productivity shocks so as to analyze policy interventions in a labor market with heterogeneous agents. To achieve this we develop an equilibrium model of wage determination and employment, which is consistent with key empirical facts. As such our model 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 long-term contracts, on-the-job search and counter-offers, and a vacancy creation and destruction process linked to productivity shocks. Importantly, the model allows for the possibility of assortative matching between workers and jobs, a feature that had been ruled out by assumption in the empirical equilibrium search literature to date. We use the model to estimate the potential gain from an optimal unemployment insurance scheme, as well as the redistributive effects of such a policy
Document type :
Journal articles
Complete list of metadata

Cited literature [42 references]  Display  Hide  Download

https://hal-sciencespo.archives-ouvertes.fr/hal-01070442
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Wednesday, October 1, 2014 - 12:42:57 PM
Last modification on : Monday, March 21, 2022 - 2:50:40 PM
Long-term archiving on: : Friday, January 2, 2015 - 11:00:43 AM

File

wp11.pdf
Explicit agreement for this submission

Licence


Distributed under a Creative Commons Attribution - ShareAlike 4.0 International License

Identifiers

Collections

Citation

Jeremy Lise, Costas Meghir, Jean-Marc Robin. Matching, Sorting and Wages. LIEPP Working Paper, Laboratoire interdisciplinaire d’évaluation des politiques publiques (LIEPP, Sciences Po), 2013. ⟨hal-01070442⟩

Share

Metrics

Record views

168

Files downloads

438