Sorting through search and matching models in economics

H Chade, J Eeckhout, L Smith - Journal of Economic Literature, 2017‏ - aeaweb.org
Toward understanding assortative matching, this is a self-contained introduction to research
on search and matching. We first explore the nontransferable and perfectly transferable …

Directed search and competitive search equilibrium: A guided tour

R Wright, P Kircher, B Julien, V Guerrieri - Journal of Economic …, 2021‏ - aeaweb.org
This essay surveys the literature on directed search and competitive search equilibrium,
covering theory and a variety of applications. These models share features with traditional …

Imperfect competition, compensating differentials, and rent sharing in the US labor market

T Lamadon, M Mogstad, B Setzler - American Economic Review, 2022‏ - aeaweb.org
We quantify the importance of imperfect competition in the US labor market by estimating the
size of labor market rents earned by American firms and workers. We construct a matched …

Firms and labor market inequality: Evidence and some theory

D Card, AR Cardoso, J Heining… - Journal of Labor …, 2018‏ - journals.uchicago.edu
We synthesize two related literatures on firm-level drivers of wage inequality. Studies of rent
sharing that use matched worker-firm data find elasticities of wages with respect to value …

Bargaining, sorting, and the gender wage gap: Quantifying the impact of firms on the relative pay of women

D Card, AR Cardoso, P Kline - The Quarterly journal of …, 2016‏ - academic.oup.com
There is growing evidence that firm-specific pay premiums are an important source of wage
inequality. These premiums will contribute to the gender wage gap if women are less likely …

Ranking firms using revealed preference

I Sorkin - The quarterly journal of economics, 2018‏ - academic.oup.com
This article estimates workers' preferences for firms by studying the structure of employer-to-
employer transitions in US administrative data. The article uses a tool from numerical linear …

Workplace heterogeneity and the rise of West German wage inequality

D Card, J Heining, P Kline - The Quarterly journal of economics, 2013‏ - academic.oup.com
We study the role of establishment-specific wage premiums in generating recent increases
in West German wage inequality. Models with additive fixed effects for workers and …

A distributional framework for matched employer employee data

S Bonhomme, T Lamadon, E Manresa - Econometrica, 2019‏ - Wiley Online Library
We propose a framework to identify and estimate earnings distributions and worker
composition on matched panel data, allowing for two‐sided worker‐firm unobserved …

How much should we trust estimates of firm effects and worker sorting?

S Bonhomme, K Holzheu, T Lamadon… - Journal of Labor …, 2023‏ - journals.uchicago.edu
Many studies use matched employer-employee data to estimate a statistical model of
earnings determination with worker and firm fixed effects. Estimates based on this model …

Earnings inequality and the minimum wage: Evidence from Brazil

N Engbom, C Moser - American Economic Review, 2022‏ - aeaweb.org
Increases in the minimum wage can substantially reduce earnings inequality. To
demonstrate this, we combine administrative and survey data with an equilibrium model of …