Search-Theoretic Models of the Labor Market: A Survey

Rogerson, Richard; Wright, Randall

doi:10.2139/ssrn.341660

Cited by 320 publications

(328 citation statements)

References 172 publications

(171 reference statements)

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“…To interpret , consider the reservation wage equation from elementary job‐search theory (see Rogerson et al., ),

R = b_{0} - b_{1} + \frac{η}{r + δ} \int_{R}^{\overset{w}{true}} [1 - F ((), w)] d w,

where b 0 ( b 1 ) is the value of leisure plus transfers if unemployed (employed). This equates the flow value of working at wage R to the cost, given by the difference

b_{0} - b_{1}

, plus the opportunity cost as measured by the appropriately capitalized return to continued search for a better offer.…”

Section: Equilibriummentioning

confidence: 99%

Marriage, Markets, and Money: A Coasian Theory of Household Formation

Burdett

Sun

et al. 2016

Int Economic Review

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This article integrates search‐based models of marriage and money. We think about households as organizations, the way Coase thinks about firms, as alternatives to markets that become more attractive when transactions costs increase. In the model, individuals consume market‐ and home‐produced goods, and home production is facilitated by marriage. Market frictions, including taxes, search, and bargaining problems, increase the marriage propensity. The inflation tax encourages marriage because being single is cash intensive. Microdata confirm singles use cash more than married people. We use macrodata over many countries to investigate how marriage responds to inflation, taxation, and other variables.

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“…To interpret , consider the reservation wage equation from elementary job‐search theory (see Rogerson et al., ),

R = b_{0} - b_{1} + \frac{η}{r + δ} \int_{R}^{\overset{w}{true}} [1 - F ((), w)] d w,

where b 0 ( b 1 ) is the value of leisure plus transfers if unemployed (employed). This equates the flow value of working at wage R to the cost, given by the difference

b_{0} - b_{1}

, plus the opportunity cost as measured by the appropriately capitalized return to continued search for a better offer.…”

Section: Equilibriummentioning

confidence: 99%

Marriage, Markets, and Money: A Coasian Theory of Household Formation

Burdett

Sun

et al. 2016

Int Economic Review

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“…These gains, however, appear modest compared with the persistent impact on earnings growth of promotions (either within or across firms) and subsequent mobility at a higher hierarchy level. F rom the job search literature, we know that mobility across firms is an important contributor to the growth in wages that employees experience over their career (for a review, see Rogerson, shimer, and Wright 2005). The personnel economics literature documents the importance of promotions for earnings progression (for a review, see gibbons and Waldman 1999a).…”

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confidence: 99%

Within- and Cross-Firm Mobility and Earnings Growth

2015

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A widely accepted premise is that promotions within firms and mobility across firms lead to significant earnings progression. Existing research generally has examined cross-firm mobility separately from hierarchical advancement. yet, as the authors' descriptive evidence from Danish panel data shows, how the two types of mobility interact is important for understanding earnings growth. Cross-firm moves at the nonexecutive level provide sizable short-run earnings growth (similar to the effect of being promoted to an executive position). These gains, however, appear modest compared with the persistent impact on earnings growth of promotions (either within or across firms) and subsequent mobility at a higher hierarchy level. F rom the job search literature, we know that mobility across firms is an important contributor to the growth in wages that employees experience over their career (for a review, see Rogerson, shimer, and Wright 2005). The personnel economics literature documents the importance of promotions for earnings progression (for a review, see gibbons and Waldman 1999a). yet existing theoretical and empirical research has generally examined cross-firm mobility separately from hierarchical advancement. As a result of the dichotomy in the literature, little evidence is currently available on the importance of interactions between within-firm and cross-firm mobility. This article presents descriptive evidence on the effects of withinand between-firm mobility on earnings growth using a rich Danish panel

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“…7 7 If wages are determined by ex post bargaining, β is the worker's bargaining power. Alternatively, β could be specified in a wage determination rule posted ex ante by the firm, as in directed search models (see, for example, Rogerson et al, 2005). …”

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confidence: 99%

New Microfoundations for the Aggregate Matching Function*

Stevens

2007

Int Economic Review

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Empirical studies of the aggregate labor market matching function have favored a Cobb-Douglas functional form, for which there are no microfoundations in the existing literature. I present a new model for the matching process, based on a "telephone-line" Poisson queuing process, which, unlike other microeconomic approaches, can be integrated directly into standard theoretical search models. This implies a CES matching function, approximately Cobb-Douglas when search costs are approximately linear. The model allows empirical estimates of matching function parameters to be interpreted in terms of the costs and benefits of search. Copyright 2007 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.

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Search-Theoretic Models of the Labor Market: A Survey

Cited by 320 publications

References 172 publications

Marriage, Markets, and Money: A Coasian Theory of Household Formation

Marriage, Markets, and Money: A Coasian Theory of Household Formation

Within- and Cross-Firm Mobility and Earnings Growth

New Microfoundations for the Aggregate Matching Function*

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