Nuremberg Research Seminar in Economics on 23 June 2021 – Start 16:45 (!!)
You are invited to join the weekly Nuremberg Research Seminar in Economics on 23 June 2021 at 16:45. The seminar will be held via Zoom. Kurt Lavetti (Ohio State University) will be talking about “Estimating Compensating Wage Differentials with Endogenous Job Mobility”.
Please find below the abstract:
We show that the effect of job amenities on wages implied by Rosen’s theory of equalizing differences can be identified under imperfect competition. Using administrative matched data from Brazil, we reconcile contradictory theoretical and empirical conclusions about compensating differentials by incorporating the role of firms in setting wages and amenities. This empirical framework approximates the Brazilian wage structure and job mobility patterns well. We develop a model with monopsonistic firms and search that rationalizes our empirical framework as an equilibrium outcome, and provides a mapping between exogeneity conditions and the interpretation of our empirical estimand relative to model primitives.