Matched employer-employee data exhibits both wage and productivity dispersion across firms and suggest that a linear relationship holds between the average wage paid and a firm productivity. The purpose of this paper is to demonstrate that these facts can be explained by a search and matching...

The theory of search is an important young actor on the stage of economic analysis. It plays a major part in a dramatic new field, the economics of information and uncertainty. By exploiting its sequential statistical decision theoretic origins, the search theory has found success by...

Matched employer-employee data exhibits both wage and productivity dispersion across firms and suggest that a linear relationship holds between the average wage paid and a firm productivity. The purpose of this paper is to demonstrate that these facts can be explained by a search and matching...