Hedonic Wages and Labor Market Search

@article{Hwang1998HedonicWA,
  title={Hedonic Wages and Labor Market Search},
  author={Hae-shin Hwang and Dale T. Mortensen and W. Robert Reed},
  journal={Journal of Labor Economics},
  year={1998},
  volume={16},
  pages={815 - 847}
}
This article investigates the consequences of labor market search for the theory of hedonic wages. We find that the introduction of search has surprising consequences for the theory of hedonic wages. In particular, we demonstrate that the equilibrium distribution of wage and nonwage amenity bundles generally bears little resemblance to workers' underlying preferences. A consequence of this analysis is that estimates of workers' marginal willingness to pay, derived from the conventional hedonic… 

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