@TechReport{iza:izadps:dp1904,
            	author={Holzner, Christian and Launov, Andrey},
            	title={Search Equilibrium, Production Parameters and Social Returns to Education: Theory and Estimation},
            	year={2005},
	month={Dec},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1904},
            	url={https://www.iza.org/index.php/publications/dp1904},
	abstract={We introduce different skill groups and production functions into the Burdett-Mortensen equilibrium search model. Supermodularity in the production process leads to a positive intrafirm wage correlation between skill groups. Theory implies that increasing returns to scale can lead to a unimodal earnings density with a decreasing right tail even in the absence of productivity dispersion. Our empirical results indicate economy-wide increasing returns to scale. We use the structural estimates of the production parameters to investigate whether private returns to education equal social returns. Our estimates suggest a positive welfare effect from increasing the share of medium-skilled agents in the workforce.},
	keywords={wage correlation;social returns to education;search},
            }