Tenure, experience, human capital and wages: a tractable equilibrium search model of wage dynamics

Bagger, Jesper; Fontaine, François; Postel‐Vinay, Fabien; Robin, Jean‐Marc

doi:10.1920/wp.cem.2014.1214

Cited by 106 publications

(184 citation statements)

References 46 publications

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“…One can see that not surprisingly a large part the increase in average wages over the life-cycle is due to increases in human capital. This is in accordance with the results from Bagger, Fontaine, Postel-Vinay, and Robin (2014). The next step is to eliminate monopsony power by setting β = 1, so workers get their full productivity.…”

Section: Life-time Profilessupporting

confidence: 87%

“…Cahuc, Postel-Vinay, and Robin (2006) extend it to account for a more general bargaining framework and Bagger, Fontaine, Postel-Vinay, and Robin (2014) allows for the accumulation of general human capital while working, see also Lentz (2010), Lise, Meghir, and Robin (2013), Robin (2011) for other applications. Our paper can most cleanly be seen as building on this literature by adding non-pecuniary aspects of jobs and much more heterogeneity in skills.…”

Section: Relation To Other Workmentioning

confidence: 99%

“…The model is in continuous time and wages are determined similarly to Cahuc, Postel-Vinay, and Robin (2006), Dey and Flinn (2005), and Bagger, Fontaine, Postel-Vinay, and Robin (2014). 2 We formally treat agents in our model as infinitely lived though in practice we think of it as a life-cycle 1 He also uses LEHD data which is quarterly data.…”

Section: The Model and Decompositionmentioning

confidence: 99%

“…Following Bagger, Fontaine, Postel-Vinay, and Robin (2014), a key aspect of this model is that when a worker receives an outside offer then the human capital rental rate is determined by a form of generalized Nash Bargaining between the two firms. This form of wage setting leads to efficient turnover.…”

Section: The Model and Decompositionmentioning

confidence: 99%

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Estimation of a Roy/Search/Compensating Differential Model of the Labor Market

Taber

Vejlin

2016

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Estimation of a Roy

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Section: Life-time Profilessupporting

confidence: 87%

Section: Relation To Other Workmentioning

confidence: 99%

Section: The Model and Decompositionmentioning

confidence: 99%

Section: The Model and Decompositionmentioning

confidence: 99%

See 2 more Smart Citations

Estimation of a Roy/Search/Compensating Differential Model of the Labor Market

Taber

Vejlin

2016

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“…Aver-18 Our algorithm is available at this address. 19 For a recent example of a similar assumption, see Bagger, Fontaine, Postel-Vinay & Robin (2014).…”

Section: Labor and Geographical Mobilitymentioning

confidence: 99%

Job Search and Migration in a System of Cities

Schmutz

Sidibé

2015

SSRN Journal

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We build an equilibrium job search model, where workers engage in both off-and on-the-job search over a set of cities, to quantify the impact of spatial matching frictions and mobility costs on the job search process.Migration decisions, based on a dynamic utility trade-off between locations, can rationalize diverse wage dynamics as part of forward-looking spatial strategies. Our estimation results allow us to characterize each of the largest 200 French cities by a set of city-specific matching and amenity parameters and to measure the impact of distance on spatial constraints. We find that after controlling for frictions, mobility cost parameters are significantly lower than previously reported in the literature. Additional results include a robust positive correlation between on-the-job arrival rates and local wage dispersion, which provides new empirical support to the wage-posting framework and suggests an alternative explanation for the city size wage gap.Keywords: local labor market; frictions; on-the-job search; migration JEL Classification: J2; J3; J6 * We thank Jim Albrecht, Pat Bayer, Bruno Decreuse, John Kennan, Thomas Le Barbanchon, Sébastien Roux and John Rust, as well as participants to many seminars and conferences, for helpful comments and discussions. This project was initiated when both authors were junior researchers at CREST and pursued when Schmutz was visiting Georgetown University and Sidibé was a post-doctoral fellow at Duke University. The generosity of these three institutions is gratefully acknowledged. Data was made available through the Centre d'Accès Sécurisé à Distance.

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Workplace heterogeneity and wage inequality in Denmark

Morin

2022

J of Applied Econometrics

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Summary Wage inequality is on the rise in most developed economies, and this phenomenon has fostered a growing body of research on its potential drivers. Using German data over the period 1985–2009, Card et al. (The Quarterly Journal of Economics 2013, 128(3), 967‐1015) argue that rising workplace heterogeneity has contributed substantially to the rise in wage inequality. I revisit their findings in two ways. First, because the generalization of their findings remains an open question, I apply their methodological approach to Danish register data and test whether rising workplace heterogeneity explains a significant share of the rise in wage inequality in Denmark. I find that, contrary to Germany, workplace heterogeneity remained practically stable over time, and this pattern contributed slightly negatively to the rise in wage inequality. Second, I complement Card et al.'s (2013) methods with the variance decomposition exercise proposed by Song et al. (2019) to identify more precisely the sources of the rise in wage inequality in Denmark. Although the rise in wage inequality is partly a between‐establishment phenomenon, I show that the strengthening of assortative matching patterns and the rising heterogeneity of workers within establishments are the main drivers of growing inequality.

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Tenure, experience, human capital and wages: a tractable equilibrium search model of wage dynamics

Cited by 106 publications

References 46 publications

Estimation of a Roy/Search/Compensating Differential Model of the Labor Market

Estimation of a Roy/Search/Compensating Differential Model of the Labor Market

Job Search and Migration in a System of Cities

Workplace heterogeneity and wage inequality in Denmark

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