Decreuse, Bruno and Zylberberg, André (2006): Job search with ubiquity and the wage distribution.
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We propose a search equilibrium model in which homogeneous firms post wages along with a vacancy to attract job-seekers, while homogeneous unemployed workers invest in costly job-seeking. The key innovation relies on the organization of the search market and the search behavior of the job-seekers. The search market is segmented by wage level, and individuals are ubiquitous in the sense they can choose the amount of search effort spent on each (sub-)market. We show that there exists a non-degenerate equilibrium wage distribution. Remarkably, the density of this wage distribution is hump-shaped, and it can be right-tailed. Our results are illustrated by an example originating a Beta wage distribution.
|Item Type:||MPRA Paper|
|Original Title:||Job search with ubiquity and the wage distribution|
|Keywords:||Search effort; Segmented markets; Equilibrium wage dispersion|
|Subjects:||J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search
J - Labor and Demographic Economics > J4 - Particular Labor Markets > J41 - Labor Contracts
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief
|Depositing User:||Bruno Decreuse|
|Date Deposited:||21. Jun 2007|
|Last Modified:||12. Feb 2013 16:31|
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Job search with ubiquity and the wage distribution. (deposited 19. Jun 2007)
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