TY  - RPRT
        AU  - Petrongolo, Barbara
AU  - Pissarides, Christopher A.
        TI  - Scale Effects in Markets with Search
        PY  - 2003/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 691
        UR  - https://www.iza.org/index.php/publications/dp691
        AB  - Reduced-form tests of scale effects in markets with search, run when aggregate matching
functions are estimated, may miss important scale effects at the micro level, because of the
reactions of job searchers. A semi-structural model is developed and estimated on a British
sample, testing for scale effects on the offer arrival rate and the wage offer distribution. When
contrasting London with the rest of the country we find scale effects in wage offers. But the
larger market delivers higher realized wages and not more matches, because the scale
effects on matches are offset by the response of reservation wages.
        KW  - job search
KW  - wage offer distribution
KW  - unemployment
KW  - aggregate matching functions
KW  - matching
KW  - economies of scale
        ER  -