In this book, the author examines the reasons why pays are so differents from a worker to an other for the same job. He finds that these differentials, or "wage dispersion", are largely the result of job search friction and cross-firm differences in wage policy and productivity. He begins by offering a simple one-period model of the problem, then expands this basic model intertemporally to include the role of on-the-job worker search behavior. He discusses theoretical modifications that offer an explanation for the nature of observed wage dispersion, particularly the shape of cross-firm wage distribution.
