TY  - RPRT
        AU  - Burdett, Ken
AU  - Carrillo-Tudela, Carlos
AU  - Coles, Melvyn
        TI  - Human Capital Accumulation and Labour Market Equilibrium
        PY  - 2009/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4215
        UR  - https://www.iza.org/publications/dp4215
        AB  - We analyse an equilibrium labour market with on-the-job search and experience effects (where workers learn-by-doing). The analysis yields a standard Mincer wage equation with worker fixed effects and endogenously determined firm fixed effects. It shows that learning-by-doing increases equilibrium wage dispersion consistent with the data. Equilibrium sorting - where over time more experienced workers also tend to find and quit to better paid employment - has a significant impact on wage inequality. As the model yields a cross section distribution of wages paid with the 'right' structure (the density of wages paid is single peaked with a 'fat' Pareto right tail) and yields the 'right' time profile of worker wage outcomes (the initial 10 years of a worker's career are characterised by several job changes and rapid wage growth) it yields a new, coherent statistical structure for future applied work.
        KW  - human capital accumulation
KW  - wage dispersion
KW  - search
        ER  -