We develop a dynamic model of transitions in and out of employment. A worker finds a job at an optimal stopping time, when a Brownian motion with drift hits a barrier. This implies that the duration of each worker's jobless spells has an inverse Gaussian distribution. We allow for arbitrary...

This paper argues that a broad class of search models cannot generate the observed business-cycle-frequency fluctuations in unemployment and job vacancies in response to shocks of a plausible magnitude. In the U.S., the vacancy-unemployment ratio is 20 times as volatile as average labor...

This paper argues that a broad class of search models cannot generate the observed business-cycle-frequency fluctuations in unemployment and job vacancies in response to shocks of a plausible magnitude. In the U.S., the vacancy-unemployment ratio is 20 times as volatile as average labor...

We develop a dynamic model of transitions in and out of employment. A worker finds a job at an optimal stopping time, when a Brownian motion with drift hits a barrier. This implies that the duration of each worker's jobless spells has an inverse Gaussian distribution. We allow for arbitrary...

This paper opens up the black box of gender-specific application and hiring behavior and its implications for the residual gender earnings gap. To understand the underlying mechanisms, we propose a two-stage matching model with testable implications. Using the German IAB Job Vacancy Survey, we...

This paper opens up the black box of gender-specific application and hiring behavior and its implications for the residual gender earnings gap. To understand the underlying mechanisms, we propose a two-stage matching model with testable implications. Using the German IAB Job Vacancy Survey, we...