Guner, Nezih; Tybout, James; Cosar, A. Kerem - Society for Economic Dynamics - SED - 2009
as in Melitz (2003). This increases
firms´ incentives to hire or
re workers as idiosyncratic productivity shocks occur, thereby increasing job turnover and, because of the search frictions, spreading the wage distribution. Preliminary simulations at plausible parameter values suggest that...