We also study the dynamics of job turnover following an unanticipated cut in tariffs. In the transition to the new steady state, we find that job turnover temporarily rises as workers are reallocated from less productive non-exporters to more productive exporters. These increases in job turnover...

This paper investigates the implications of agency problems on credit markets when vacancy costs require some external financing for the propagation properties of an otherwise standard labor search model. The countercyclical premium on external finance greatly increases the elasticity of...