unemployment and its underlying duration distribution. We develop an analytically and computationally tractable stochastic … equilibrium model with heterogenous labor markets. In this model three different types of unemployment arise: search, rest and … cyclical unemployment to be highly volatile. The resulting unemployment duration distribution generated by the model responds …

We analyze a general search model with on-the-job search and sorting of heterogeneous workers into heterogeneous jobs … rate of 4-6%. We find that without search frictions, output would be between 7.5% and 18.5% higher, depending on whether or …

business cycle model with search and matching frictions. We extend the canonical model by including capital …

manufacturing. Earnings losses are larger for individuals with low initial wages, low initial tenure, and low attachment to the …

search for new positions both on and off the job, the worker’s marginal willingness to pay for job security is endogenous: it …. We solve for the labor market equilibrium, finding that wages increase with job security for at least all firms in the …

How are wages set in an open economy? What role is played by demand pressure, international competition, and structural … factors in the labour market? How important is nominal wage rigidity and exchange rate policy for the evolution of real wages … equation on data for aggregate manufacturing wages in Denmark, Finland, Norway, and Sweden from the mid 1960s to the mid 1990s. …

, are the first to leave the firm (Last In, First Out; LIFO). Second, workers’ wages rise with seniority (= a worker … to seniority in wages. Efficiency in hiring requires the workers’ bargaining power to be in line with their share in the …

equilibrium search model of the labor market with an endogenous number of contacts between workers and firms. Workers contact … estimated parameter values welfare is improved if unemployed workers increase their search intensity. …