Xie, Runli - 2011 - This draft: February, 2011
investment. Idiosyncratic shock shifts the skilled labor share and changes tightness in both skilled and unskilled markets. Given … labor markets. Upon a neutral shock, total unemployment decrease is two-staged: firstly with a reduction in unskilled …-specific unemployment ; human capital investment ; idiosyncratic shock ; skill substitution ; search and matching …