 Estimating a Market Equilibrium Search Model from Panel Data on Individuals

In this Paper Eckstein and Wolpin estimate a market equilibrium search model using panel data.This is the first work that estimated a Nash labor market equilibrium model based on data of individuals whereas the wage is resolved endogenic.The main finding is that a model of this sort fails to give an answer to the dispersion extent of wages between individuals with professional background and equal human capital.