This paper constructs an equilibrium job-matching model where workers differ in their attachment to the labor force. The model predicts that workers with weaker attachment to the labor market will receive lower starting wages and lower post-training wages, and will be placed in jobs that offer...

We examine the relationships among on-the-job training, starting wages, wage growth, and productivity growth. Our models suggest that training lowers starting wages, but the estimated magnitudes are small. When firms are asked directly, we find that they pay higher starting wages to workers...

This paper develops a theory of the unemployed individual's choice of how much effort to devote to search. The term effort involves two choice variables, time and money. Specific attention is given to the role of unemployment contingent income and the probability of obtaining employment without...

I argue against the popular view that young Black men experience more joblessness than their White counterparts because they have priced themselves out of the labor market. The seemingly excessive reservation wages of jobless young Black men, what they ...