Endogenous job destructions and the distribution of wages

This paper considers a matching model with both idiosyncratic productivity shocks that hit jobs at random and heterogeneity of workers according to ex ante unobservable abilities. We argue that firms' decisions about reservation productivity can help explain the shape of wage distributions. This is shown from numerical experiments, calibrated to French data, by considering alternative ranges of productivity shocks.

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Year of publication:	2011
Authors:	Chéron, Arnaud ; Rouland, Bénédicte
Published in:	Labour Economics. - Elsevier, ISSN 0927-5371. - Vol. 18.2011, 6, p. 845-852
Publisher:	Elsevier
Subject:	Wage distribution \| Matching \| Firing \| Heterogeneity

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010577397