@article{d256717bf26249dfaa08f719411543fc,
title = "Returns to on-the-job search and wage dispersion",
abstract = "A wide class of models with On-the-Job Search (OJS) predict that workers gradually select into better jobs. We develop a simple method based on the expected number of job offers received that can be used to measure match quality, identify the wage offer distribution and estimate the contribution of OJS to wage dispersion and the increase in wages over the lifecycle. The method uses two sources of identification: (i) time variation in job-finding rates and (ii) individual variation in the time since the last layoff. Applying this method to the NLSY 79, we find that the standard deviation of the wage-offer distribution is 13% and that OJS accounts for 8% of the total wage dispersion and 30% of the wage-increase over the lifecycle.",
keywords = "on-the-job search, wage dispersion, job duration",
author = "Axel Gottfries and Coen Teulings",
note = "Funding Information: ☆ We would like to thank Jim Albrecht, Jake Bradley, Jan Eeckhout, Junjie Guo, Marcus Hagedorn, John Kennan, Philipp Kircher, Moritz Kuhn, Hannes Malmberg, Iourii Manovskii, Fabien Postel-Vinay, Robert Shimer and Rune Vejlin. Thanks are also due to the participants of the 12th Nordic Summer Institute in Labor Economics, NBER SI 2015, Dale Mortensen Centre Conference on Labor Market Models and Their Applications 2015, ESSLE (2015, 2016), SaM conferences in Amsterdam and Cambridge, NYU macro student lunch and seminar participants at the University of Cambridge. Gottfries thanks the Economic and Social Research Council and the Tom Hedelius Foundation for financial support. Teulings thanks the Cambridge Inet Institute, the Centre for Macroeconomics and the Cooperation for European Research in Economics (COEURE) for financial support. Funding Information: We would like to thank Jim Albrecht, Jake Bradley, Jan Eeckhout, Junjie Guo, Marcus Hagedorn, John Kennan, Philipp Kircher, Moritz Kuhn, Hannes Malmberg, Iourii Manovskii, Fabien Postel-Vinay, Robert Shimer and Rune Vejlin. Thanks are also due to the participants of the 12th Nordic Summer Institute in Labor Economics, NBER SI 2015, Dale Mortensen Centre Conference on Labor Market Models and Their Applications 2015, ESSLE (2015, 2016), SaM conferences in Amsterdam and Cambridge, NYU macro student lunch and seminar participants at the University of Cambridge. Gottfries thanks the Economic and Social Research Council and the Tom Hedelius Foundation for financial support. Teulings thanks the Cambridge Inet Institute, the Centre for Macroeconomics and the Cooperation for European Research in Economics (COEURE) for financial support. Publisher Copyright: {\textcopyright} 2022 The Author(s)",
year = "2023",
month = jan,
doi = "10.1016/j.labeco.2022.102292",
language = "English",
volume = "80",
journal = "Labour Economics",
issn = "0927-5371",
publisher = "Elsevier",
}