@techreport{b99a1605d639471c996a040cf170d5e8,
title = "Competing Auctions of Skills",
abstract = "The model of competing sellers McAfee (1993) is applied to a labor market environment with heterogeneous workers, who differ by outside option and skill type, and heterogeneous firms, who differ by the amount of output produced when matched to each possible worker tyoe. We derive both a static and a dynamic version of this model where workers can entertain offers while employed and unemployed. A simple estimated benchmark version of the dynamic model gives a reasonable approximation of the statistical moments of both the aggregate wage and productivity distribution in Denmark. We also use the simple benchmark model to explore further implications of the theory. For example, we find that observed inter-temporal changes in the overall distribution of wages are not predicted by a simple model of no-comparative advantage. ",
keywords = "Faculty of Social Sciences, Competing auctions, on-the-job search, heterogeneous firms, skills, supermodularity, non-degenerate job offer distribution",
author = "John Kennes and {le Maire}, {Christian Daniel}",
note = "JEL Classification: J64; J63; E32",
year = "2014",
language = "English",
series = "CAM working papers",
number = "01",
publisher = "Centre for Applied Microeconometrics. Department of Economics, University of Copenhagen",
type = "WorkingPaper",
institution = "Centre for Applied Microeconometrics. Department of Economics, University of Copenhagen",
}