Bagga, Sadhika; Mann, Lukas Friedrich; Şahin, Ayşegül; … - National Bureau of Economic Research - 2025
We introduce aggregate shocks to workers' value of job amenities in a frictional equilibrium model of the labor market with on-the-job search, where the job creation cost is sunk and quits trigger vacancies. We examine how key labor market indicators respond to this shock: when the valuation of...