This paper examines a search-matching model in which match specific output follows a geometric Brownian motion. As opposed to Poisson Processes, Brownian motions generate a negative correlation between job output and the likelihood of separation. Introducing geometric Brownian motion improves...

This paper argues that the effect of openness to trade on process innovations and skill premia importantly depends on the structure of labor markets in developed countries. Openness to trade with less developed countries is often modelled as a fall in the relative price of unskilled-labor...