This paper originally incorporates life-cycle features into the job creation - job destruction framework. Once a finite horizon is introduced, this workhorse labor market model naturally delivers the empirically uncontroversial prediction that the employment rate of workers decreases with age...

This appendix of our paper, "Demographic Change, Human Capital and Welfare", contains further material that could not be included in the paper due to space limitations. It is organized as follows. Section A contains the formal equilibrium definition. Section B provides more results on the fit of...

Social contacts help workers to find jobs, but those jobs need not be in the occupations where workers are most productive. Hence social contacts can generate mismatch between a worker's occupational choice and his comparative productive advantage. Thus economies with dense social networks can...

In this paper, we examine the general equilibrium implications of human capital accumulation in the presence of superstar markets, in which small differences in skill translate into huge differences in earnings. Previous research has concentrated on the microeconomic wage implications of...

This paper compares the sources of wage growth of young workers in two countries with very different labor market institutions, the United States and Germany. It identifies the return to general human capital accumulation, and provides a lower and upper bound to wage growth due to firm-specific...

This paper suggests a solution to the puzzling finding documented in Moskowitz and Vissing-Jorgensen (2002) that the return to an index of private equity is equal to the return to the CRSP index of public equity even though investment in private firms is substantially riskier. It presents an...

This paper presents a theory where increases in female labor force participation and reductions in the gender wage-gap are generated as part of the same process of demographic transition that leads to reductions in fertility. There have been significant increases in the labor supply of women in...

In this paper we assess the role of reallocation of resources -- through shifts in market shares among incumbents as well as through firm entry and exit – to productivity. We are motivated by the evidence in all countries studied of heterogeneity of firms and substantial mobility of...

In this paper I estimate unobserved labor-generated knowledge spillovers within and among six large macroeconomic sectors covering the totality of the US civilian economy from 1948 to 1991. Unobserved spillovers are identified by observed TFP changes measured using Dale Jorgenson’s...

A dynamic general equilibrium model of work, schooling, occupational and sectoral decisions is developed and estimated. The model is fit to data on life cycle employment, schooling, occupational and sectoral decisions, and on life cycle labor earnings, within and between cohorts observed in the...