About LMDG

LMDG, Department of Economics and Business, School of Business and Social Sciences, Aarhus University. LMDG is a Dale T Mortensen Visiting Niels Bohr professorship project sponsored by Danish National Research Foundation

About the Labour Research Group

The Labour Research Group at the Department of Economics and Business, School of Business and Social Sciences, carried out research in applied and theoretical labour market theory.
Its members are also associated with several other research activities.
Professor Dale T. Mortensen, Department of Economics, Northwestern University, has been appointed Niels Bohr Visiting Professor for the period 2006-2010. The professorship is based on a grant from Danish National Research Foundation. Together with Ass. Prof. Rasmus Lentz, University of Wisconsin, he will be visiting the institute for 3-5 months each autumn.
The current research topics will be on worker and job flows, growth, and international trade. The research will be using several matched employer-employee data sets in Statistics Denmark.
A yearly Aarhus labour Economics conference will be arranged with a topic related to the ongoing research.
Several Ph.D. and Post Doc grants will be offered as part of the Niels Bohr Visiting Professorship grant.

In 2004 the group arranged the Conference on Labour Market Models and Matched Employer-Employee Data. A conference volume has been published Structural Models of Wage and Employment Dynamics.

About the Research Projects

The research projects carried out in relation to the Niels Bohr professorship are within the topic of  ”Labour Market Dynamics and Growth”.

In their review article on productivity, Bartelsman and Doms (2000) draw three lessons from empirical studies based on longitudinal plant and firm data: First, the extent of dispersion in relative productivity across production units is large. Second, the productivity rank of any unit in the distribution is highly persistent. Third, a large fraction of aggregate productivity growth is the consequence of reallocation of workers and complementary inputs from less to more productive units.

The research projects will study the implications of these facts for the dynamics of firm evolution and the distribution of firm size in an equilibrium model. Specifically, the projects intend to develop a model that captures the process of worker reallocation from less to more productive firms and can be used to determine the impact of labour market policy on reallocation, employment, wage determination, and growth.

Currently, the following research fields are defined:

  • Productivity Differences, Firm Evolution, and Growth
  • Productivity Dispersion, Worker Flows, and Aggregate TFP
  • Firm Heterogeneity, Earnings Differences, and Job Mobility
  • International Trade and Growth
  • The Family, Labour supply, and  the Labour market Performance and Policy

Detailed Research Plans