Wage dispersion and mobility

Gerard J. van den Berg*

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)peer-review

5 Citations (Scopus)

Abstract

This paper examines the influence of wage dispersion on job mobility. An on the job search model is used to describe the strategy of working individuals. We derive and estimate elasticities with respect to moments of the wage offer distribution. For this we do not need to assume a specific parametric form of this distribution, nor do we have to estimate the whole distribution. We also examine what happens to mobility if, in addition to a change of the wage offer distribution, the present wage changes by an amount proportional to the difference of the wage and the mean of the wage offer distribution. The results suggest that the effects depend on whether the present wage is smaller or larger than the mean wage offer.

Original languageEnglish
Pages (from-to)15-27
Number of pages13
JournalEconomic Modelling
Volume12
Issue number1
DOIs
Publication statusPublished - 1995

Keywords

  • Inequality
  • Mobility
  • Wages

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