Wage dispersion is generated in a sequential search environment through heterogeneity in firm productivity along with an individual wage-effort trade-off. For a given degree of TFP dispersion, the framework can generate any amount of wage dispersion. Calibrated to generate realistic gains from...

Without assuming innate differences between genders, we show that the simultaneous interaction between frictional labor and marriage markets can result in a "gendered" equilibrium which is consistent with observed empirical regularities: men earn more than women, and their attachment to the...