An Empirical Framework for Matching with Imperfect Competition

15:40-17:00, Friday, July 5, 2024

I-206, Boxue Building, DUFE

Dr. Chan is now an Assistant Professor of Economics at Queen's University in Canada. He earned his Ph.D. in Economics from The University of Minnesota in 2018. His research interests include firm dynamics, productivity, market power, inequality, trade and macroeconomics.

This paper builds, identifies, and estimates a model of the labor market that features strategic interactions in wage setting and two-sided heterogeneity in order to shed light on the sources of wage inequality. We provide a tractable characterization of the model equilibrium and demonstrate its existence and uniqueness. This characterization of the equilibrium allows us to derive a rich set of comparative statics and to gauge the relative contributions of worker skill, preference for amenities and strategic interactions to equilibrium wage inequality. Using instrumental variables, we establish identification of labor demand and supply parameters and estimate them using matched employer-employee data from Denmark. Using our estimated structural model, we perform a series of counterfactual analyses in order to provide a quantitative evaluation of the main sources of wage inequality in Denmark.

For more information of the seminar, scan the following QR code(s) to join Tencent QQ group (904 544 292) or WeChat group named "IAER Seminar (5)", please.

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(QR code is valid until July 8, 2024)