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Note on the Determinants of Wage Dispersion

Yosuke Oda ()
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Yosuke Oda: Graduate school of Economics, Osaka university

No 08-37, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: The purpose of this note is to explain theoretically the observed entire density of wages which is hump-shaped and right-skewed. I extend the model brought up by Halko et al . (2008) to introduce heterogeneity of firm fs productivity. It causes a difference in the support of wage offers, a wider (narrower) range for high (low) productivity firms. The different support roughly results in the observed wage dispersion because low wage offers are made by all firms (right-skewed), whereas high wage offers are made by only high producivity firms.

Keywords: search; matching; wage posting; wage dispersion (search for similar items in EconPapers)
JEL-codes: J31 J64 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2008-12
New Economics Papers: this item is included in nep-lab
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