Arbeitspapier

Efficiency and Labor Market Dynamics in a Model of Labor Selection

This paper characterizes efficient labor-market allocations in a labor selection model. The model's crucial aspect is cross-sectional heterogeneity for new job contacts, which leads to an endogenous selection threshold for new hires. With cross-sectional dispersion calibrated to microeconomic data, 40 percent of empirically-relevant fluctuations in the job-finding rate arise, which contrasts with results in an efficient search and matching economy. The efficient selection model's results hold in partial and general equilibrium, as well as with sequential search.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 9291

Classification
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Business Fluctuations; Cycles
Demand and Supply of Labor: General
Subject
sequential search
hiring costs
labor market frictions
labor selection
labor market
efficiency
amplification

Event
Geistige Schöpfung
(who)
Chugh, Sanjay K.
Merkl, Christian
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2015

Handle
Last update
20.09.2024, 8:23 AM CEST

Data provider

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Object type

  • Arbeitspapier

Associated

  • Chugh, Sanjay K.
  • Merkl, Christian
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2015

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