Course type
IWH-DPE Elective Course (Macro & Productivity, Labour & Behaviour Topic Tracks)
Lecturer
Professor Ciprian Domnisoru, PhD (Aalto University)
Summary
Students are introduced to basic search models as well as the literature on firm wage differences and the fixed effects methods used to measure these differences.
Schedule
22.10.2025 10:30-12:00 and 13:00-14:30 IWH, Leipziger Str. 100, 3rd floor, Conference Room
23.10.2025 10:30-12:00 and 13:00-14:30 IWH, Leipziger Str. 100, 3rd floor, Conference Room
Content
1. Basic search models
2. Empirical facts about wage differentials and AKM models
3. Wage differentials in wage posting models
4. Wage bargaining
Course requirements
Attendance at all lectures is mandatory.
Students will be given an assignment, due two weeks after the last lecture, consisting of theoretical derivations, empirical applications using code provided, as well as a short research brief on an extension of models taught in class.
Suggested Reading
Abowd, J. M., Kramarz, F., & Margolis, D. N. (1999). High wage workers and high wage firms. Econometrica, 67(2), 251-333.
Cahuc, P., Postel‐Vinay, F., & Robin, J. M. (2006). Wage bargaining with on‐the‐job search: Theory and evidence. Econometrica, 74(2), 323-364.
Cahuc, P., Carcillo, S., & Zylberberg, A. (2014). Labor economics. MIT press. Chapter 5. Job search
Card, D., Heining, J., & Kline, P. (2013). Workplace heterogeneity and the rise of West German wage inequality. The Quarterly journal of economics, 128(3), 967-1015.
Kline, P. M. (2024). Firm Wage Effects: A Review of Literature and Methods. NBER working paper 33084.
Registration
Please register for the course until September 30, 2025 by sending an e-mail to cgde@iwh-halle.de.