Bils, Mark Joseph; Chang, Yongsung; Kim, Sun-Bin - National Bureau of Economic Research (NBER) - 2009
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...