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differ in their productivities. Wages are dispersed because of search frictions and workers' productivity differentials. The … productivity differentials, frictional wage dispersion and workers' sorting dynamics. I calibrate the model using a sample of young …' productivity differentials. Differences in firms' productivities are also an important source of wage inequality for both skill …
Persistent link: https://www.econbiz.de/10013098341
We build an analytically and computationally tractable stochastic equilibrium model of unemployment in heterogeneous labor markets. Facing search frictions within markets and reallocation frictions between markets, workers endogenously separate from employment and endogenously reallocate between...
Persistent link: https://www.econbiz.de/10013087720
Large and persistent earnings losses following displacement have adverse consequences for the individual worker and the macroeconomy. Leading models cannot explain their size and disagree on their sources. Two mean-reverting forces make earnings losses transitory in these models: search as an...
Persistent link: https://www.econbiz.de/10012951559
Randomized experiments provide policy relevant treatment effects if there are no spillovers between participants and nonparticipants. We show that this assumption is violated for a Danish activation program for unemployed workers. Using a difference-in-difference model we show that the...
Persistent link: https://www.econbiz.de/10013015330
A wide class of models with On-the-Job Search (OJS) predicts that workers gradually select into better-paying jobs. We develop a simple methodology to test predictions implied by OJS using two sources of identification: (i) time-variation in job-finding rates and (ii) the time since the last...
Persistent link: https://www.econbiz.de/10012956895
This paper addresses outsourcing in the two-type optimal income tax model. If the government is able to control outsourcing via a direct tax instrument, outsourcing will not affect the marginal income tax structure. In the absence of a direct tax instrument, and under the plausible assumption...
Persistent link: https://www.econbiz.de/10012772230
We consider a model of on-the-job search where firms offer long-term wage contracts to workers of different ability. Firms do not observe worker ability upon hiring but learn it gradually over time. With sufficiently strong information frictions, low-wage firms offer separating contracts and...
Persistent link: https://www.econbiz.de/10013315977
workers and firms in Denmark between 1999 and 2009, we use instrumental-variables techniques and a quasi-natural experiment to …
Persistent link: https://www.econbiz.de/10012986113
productivity - enhancing effect. The reform of fixed-term contracts instead did not produce the intended results: it induced a … substitution of temporary employees in favor of permanent ones and reduced capital intensity, generating productivity losses. We …
Persistent link: https://www.econbiz.de/10013122251
We examine the matching process using monthly panel data for local labour markets in Sweden. We find that an increase …
Persistent link: https://www.econbiz.de/10012962923