Utilizing a model in which individuals search among lotteries on likely success at different jobs, this paper analyzes both the search decision when unemployed and the implications of the sorting process. The model correctly predicts both the direction and convexity of the age-unemployment...

This paper analyzes the nature of wage changes over a decade of labor market experience. Discontinuous changes (jumps) account for the preponderance of wage increases, as wage falls do for declines. A worker's jump and fall history also influences the likelihood of both promotions and quits...

Utilizing a model in which individuals search among lotteries on likely success at different jobs, this paper analyzes both the search decision when unemployed and the implications of the sorting process. The model correctly predicts both the direction and convexity of the age-unemployment...