Heterogeneity and Cyclical Unemployment

We model worker heterogeneity in the rents from being employed in a Diamond-Mortensen-Pissarides model of matching and unemployment. We show that heterogeneity, reflecting differences in match quality and worker assets, reduces the extent of fluctuations in separations and unemployment. We find that the model faces a trade-off--it cannot produce both realistic dispersion in wage growth across workers and realistic cyclical fluctuations in unemployment.

MoreLess

Year of publication:	2009-07
Authors:	Bils, Mark Joseph ; Chang, Yongsung ; Kim, Sun-Bin
Institutions:	National Bureau of Economic Research (NBER)

Online Resource

Check full text access |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	NBER Working Papers.
Type of publication:	Book / Working Paper
Notes:	EFG published as “Worker Heterogeneity and Endogenous Separations in a Matching Model of Unemployment Fluctuations” (together with Yongsung Chang and Sun-Bin Kim), American Economic Journal: Macroeconomics , January 2011. Number 15166
Classification:	E2 - Consumption, Saving, Production, Employment, and Investment ; E32 - Business Fluctuations; Cycles
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005079159