How much of a worker's lifetime experience in the labor market is due to human capital accumulation versus luck? We build a life-cycle model of directed search in the labor market, in which workers move between the states of unemployment, employment and across employers because of differences in...

TBD

In the last few decades there is a clear shift of employment shares from the manufacturing sector to the service sector in the US and in many industrialized countries. At the same time, the structure of residual wages changes considerably, within and across sectors. To understand the sources of...