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: NYU Search Theory Workshop, 5 October 2013, New York, USA.

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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
Depositing User: PEPA User
Date Deposited: 21 Nov 2013 10:55
Last Modified: 14 Jul 2021 13:58

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