Unemployment history and frictional wage dispersion

• 成果类型: Article
• 署名作者: Ortego-Marti, Victor
• 署名单位: University of California System; University of California Riverside
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2015.12.002
• 发表日期: 2016
• 页码: 5-22
• 关键词: Search and matching; Frictional wage dispersion; Unemployment history; Skill loss; Unemployment volatility

摘要

Recent evidence shows that baseline search models struggle to match the observed levels of wage dispersion. This paper studies a random matching search model with human capital losses during unemployment. Wage dispersion increases, as workers accept lower wages to avoid long unemployment spells. The model explains between a third and half of the observed residual wage dispersion. When adding on-the-job search, the model accounts for all of the residual wage dispersion and generates substantial dispersion even for high values of non-market time. The paper thus addresses the trade-off between explaining frictional wage dispersion and the cyclical behavior of unemployment. (C) 2015 Elsevier B.V. All rights reserved.