A study of Wage dispersion : The Burdett-Mortensen Model applied to:Swedish white collar workers between 1973 and 1989

This essay deals with wage dispersion, the Burdett-Mortensen model is applied to a set of data collected from the year 1973 – 1989. The Burdett-Mortensen model aims to explain the reasons for wage dispersion between similar able individuals. The purpose of this essay is to test the Burdett-Mortensen...

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Bibliographic Details
Main Author: Nuñez, Ilich
Format: Others
Language:English
Published: Växjö universitet, Ekonomihögskolan, EHV 2009
Subjects:
Online Access:http://urn.kb.se/resolve?urn=urn:nbn:se:vxu:diva-4870
Description
Summary:This essay deals with wage dispersion, the Burdett-Mortensen model is applied to a set of data collected from the year 1973 – 1989. The Burdett-Mortensen model aims to explain the reasons for wage dispersion between similar able individuals. The purpose of this essay is to test the Burdett-Mortensen model accuracy in explaining wage dispersion between similar able people, by applying it to male supervisors in Sweden between 1973 and 1989. The results of this test are mixed, meaning that no clear judgment can be done to validate or reject the accuracy of the assumptions made by the authors of this model. These results leads to the conclusion that further more expansive test of this model is required to make such a judgement.