In the last few decades there is a clear shift of employment shares from the manufacturing sector to the service sector in the US and in many industrialized countries. At the same time, the structure of residual wages changes considerably, within and across sectors. To understand the sources of...

In the last few decades there is a clear shift of the U.S. economy from the non-service sector to the service sector. We document the patterns of changes in the employment share in services, the transition rates of workers between the two sectors and between different employment status, the...

This dissertation is comprised of three papers. In Chapter 1 I analyze if career heterogeneity in terms of life-cycle earnings, occupational mobility and unemployment is predominantly driven by skills acquired prior to labor market entry or by decisions made and shocks accumulated over the...

The focus of this paper is on the steady state of a two-sector economy with undirected search where employed and unemployed workers can search for jobs, both within a sector and between the sectors. As in the one-sector model, on-the-job search generates wage dispersion among homogeneous...

Using data from the Census, ACS and the CPS, we document that a large part of long-run reallocation of labor from the goods to the service sector took place within narrowly defined groups of workers. In particular, sectoral reallocation reflects a labor market trend that is distinct from the...