hiring and firing of workers, labour reallocation and productivity growth. It also reviews how workers affected by labour … labour market flows and these flows, in turn, have significant impacts on productivity growth. At the same time, the evidence …

labor market flexibility, in a general equilibrium model of dynamic labor demand where the productivity of firms evolves ….e. unexpected changes in the drift and standard deviation of the stochastic process describing the dynamics of productivity, depends … workers with idiosyncratic productivity below some threshold value. A more volatile environment, and a lower rate of …