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- handle: 10670/1.v3ulc8
- hal: hal-03416494
- SCIENCESPO: 2441/f0uohitsgqh8dhk9820196s0p
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Christian Bontemps et al., « Equilibrium search with continuous productivity dispersion: theory and nonparametric estimation », HAL-SHS : économie et finance, ID : 10670/1.v3ulc8
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Résumé
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.