Minimum wages, wage dispersion and unemployment in search models. A review

Journal for Labour Market Research

Table 1 Heterogeneity in search models

	Frictions	Endogenous wage dispersion	Heterogeneity of employees	Heterogeneity of firms	Effects on wage dispersion	Effects on unemployment
Neo-classical model framework	No	Yes	Yes	No	–	\( { + } \)
Partial search theory	Yes	No	Yes	Yes	–	\( { + } \)
Burdett and Mortensen (1998)	Yes	Yes	No	No	–	0
Burdett and Mortensen (1998) with continuous search costs; Ridder and Van den Berg (1997)	Yes	Yes	Yes	No	–	–
Bontemps et  al. (2000); Acemoglu and Shimer (2000)	Yes	Yes	No	Yes	–	0
Postel-Vinay and Robin (2002b); Holzner and Launov (2010)	Yes	Yes	Yes	Yes	–	\( { + } \)