The macro-dynamics of sorting between workers and firms

Lise, Jeremy and Robin, Jean-Marc (2013) The macro-dynamics of sorting between workers and firms. In: Macroeconomics Seminar, 8 October 2013, University of Waterloo, Canada..

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Official URL: http://www.ifs.org.uk/publications/6838

Abstract

We develop an equilibrium model of on-the-job search with ex-ante heterogeneous workers and firms, aggregate uncertainty and vacancy creation. The model produces rich dynamics in which the distributions of unemployed workers, vacancies and worker-firm matches evolve stochastically over time. We prove that the surplus function, which fully characterises the match value and the mobility decision of workers, does not depend on these distributions. We estimate the model on US labour market data from 1951-2007 and predict the fit for 2008-12. We use the model to measure the cyclicality of mismatch between workers and jobs.

Item Type:Conference or Workshop Item (Paper)
Uncontrolled Keywords:On-the-job search; Heterogeneity; Aggregate fluctuations; Mis-match
Subjects:1. Frameworks for Research and Research Designs > 1.11 Evaluation Research
ID Code:3215
Deposited By: PEPA User
Deposited On:21 Nov 2013 11:16
Last Modified:21 Nov 2013 11:16

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