This paper develops a simple framework for examining human capital accumulation, unemployment, and relative wages in a …

, but not all, of this rigidity by varying benefits: Total compensation displays modestly less rigidity than do wages alone …

heterogeneity, job-specific error components in both wages and hours, and measurement error. We use the model to address a number of … important questions in labor economics, including the source of the experience profile of wages, the response of job changes to …-specific error components in wages and hours. …