Abstract
We analyze an equilibrium labor market with on-the-job search and experience effects (as workers learn by doing). The analysis yields a Mincer wage equation with worker fixed effects and endogenously determined firm fixed effects. Equilibrium sorting-where over time more experienced workers also tend to move to better paid employment-has a significant impact on wage inequality.
Original language | English (US) |
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Pages (from-to) | 657-677 |
Number of pages | 21 |
Journal | International Economic Review |
Volume | 52 |
Issue number | 3 |
DOIs | |
State | Published - Aug 2011 |
ASJC Scopus subject areas
- Economics and Econometrics