Bils, Mark; Chang, Yongsung; Kim, Sun-Bin - In: Journal of Monetary Economics 59 (2012) 2, pp. 150-165
Worker heterogeneity in productivity and labor supply is introduced into a matching model. Workers who earn high wages and work high-hours are identified as those with strong market comparative advantage—high rents from being employed. The model is calibrated to match separation, job finding,...