Wage differentials, employer size, and unemployment

The unique equilibrium solution ts a game in which a continuum of individual employers choose permanent wage offers and a continuum of workers search by sequentially sampling from the set of offers is characterized. Wage dispersion is a robust outcome provided that workers search while employed as well as when unemployed. The unique nondegenerate equilibrium distribution of wage offers is constructed for three cases: (i) identical workers and employers, (ii) identical employers and an atomless distribution of worker supply prices, and (iii) identical workers and an atomless distribution of job productivities.