Heterogeneity in Macroeconomics: Empirical Evidence (completed)

A four year study on the  heterogeneity of workers and firms in order to provide new answers to classic questions within macroeconomics, economic growth and labor economics.

Illustrasjonsfoto: Colourbox.no

About the project

The project takes seriously the well documented huge heterogeneity which characterizes workers and firms but has been largely ignored by the macroeconomics literature. Within this framework we will provide new answers to several classic questions in macroeconomics, economic growth and labor economics:

Does the market allocate the right workers to the right firms? Are complementarities between workers and firms important in determining output, productivity, and wages?  What are the sources of observed wage differentials across industries and firms and between males and females?


Primary Objective

The primary objective of the project is to Identify and measure the technology which transforms unobserved worker ability and unobserved firm productivity into output for various countries (Denmark, Germany and Norway).

Secondary Objective

The secondary objective of the project is to use the identified technology to answer several substantive questions including the optimal allocation of workers to firms, the output loss from frictions and the sources of wage inequality. The research will also contribute to business cycle theory, international trade and labor economics.


The project is funded by the Research Council of Norway under the FRIHUMSAM program with NOK 11,5 million over a four year period from January 2016 until December 2019.


The project will be carried out in cooperation with the Frisch Centre.

Published May 25, 2016 3:36 PM - Last modified Sep. 2, 2022 2:39 PM