Search equilibrium, production parameters and social returns to education: theory and estimation

Arbeitspapier

We introduce different skill groups and production functions into the Burdett-Mortensen equilibrium search model. Supermodularity in the production process leads to a positive intrafirm wage correlation between skill groups. Theory implies that increasing returns to scale can lead to a unimodal earnings density with a decreasing right tail even in the absence of productivity dispersion. Our empirical results indicate economy-wide increasing returns to scale. We use the structural estimates of the production parameters to investigate whether private returns to education equal social returns. Our estimates suggest a positive welfare effect from increasing the share of medium-skilled agents in the workforce.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 1904

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Labor Force and Employment, Size, and Structure ; Labor Demand ; Unemployment: Models, Duration, Incidence, and Job Search
• Thema: search ; wage correlation ; social returns to education

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Holzner, Christian ; Launov, Andrey
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/33613
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ