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Publication - Professor Gerard Van den Berg

    Equilibrium search with continuous productivity dispersion

    Theory and nonparametric estimation

    Citation

    Bontemps, C, Robin, JM & Berg, GJVD, 2000, ‘Equilibrium search with continuous productivity dispersion: Theory and nonparametric estimation’. International Economic Review, vol 41., pp. 305-358

    Abstract

    In this article we develop an equilibrium search model with a continuous distribution of firm productivity types within a given labor market. We characterize equilibrium, derive expressions for the endogenous equilibrium wage distributions, and characterize the set of wage distributions that can be generated by the model. We develop a structural nonparametric estimation method for the productivity distribution. We estimate the model using French longitudinal survey data on labor supply, and we compare the results with those from a French panel data set of firms. The results are informative on the degree to which firms exploit search frictions.

    Full details in the University publications repository