Competing Auctions of Skills
Publikation: Working paper › Forskning
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Competing Auctions of Skills. / Kennes, John; le Maire, Christian Daniel.
Kbh. : Centre for Applied Microeconometrics. Department of Economics, University of Copenhagen, 2014.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Competing Auctions of Skills
AU - Kennes, John
AU - le Maire, Christian Daniel
N1 - JEL Classification: J64; J63; E32
PY - 2014
Y1 - 2014
N2 - The model of competing sellers McAfee (1993) is applied to a labor market environment with heterogeneous workers, who differ by outside option and skill type, and heterogeneous firms, who differ by the amount of output produced when matched to each possible worker tyoe. We derive both a static and a dynamic version of this model where workers can entertain offers while employed and unemployed. A simple estimated benchmark version of the dynamic model gives a reasonable approximation of the statistical moments of both the aggregate wage and productivity distribution in Denmark. We also use the simple benchmark model to explore further implications of the theory. For example, we find that observed inter-temporal changes in the overall distribution of wages are not predicted by a simple model of no-comparative advantage.
AB - The model of competing sellers McAfee (1993) is applied to a labor market environment with heterogeneous workers, who differ by outside option and skill type, and heterogeneous firms, who differ by the amount of output produced when matched to each possible worker tyoe. We derive both a static and a dynamic version of this model where workers can entertain offers while employed and unemployed. A simple estimated benchmark version of the dynamic model gives a reasonable approximation of the statistical moments of both the aggregate wage and productivity distribution in Denmark. We also use the simple benchmark model to explore further implications of the theory. For example, we find that observed inter-temporal changes in the overall distribution of wages are not predicted by a simple model of no-comparative advantage.
KW - Faculty of Social Sciences
KW - Competing auctions
KW - on-the-job search
KW - heterogeneous firms
KW - skills
KW - supermodularity
KW - non-degenerate job offer distribution
M3 - Working paper
T3 - CAM working papers
BT - Competing Auctions of Skills
PB - Centre for Applied Microeconometrics. Department of Economics, University of Copenhagen
CY - Kbh.
ER -
ID: 101008811