The labor market by itself can create cyclical outcomes, even in the absence of exogenous shocks. We propose a theory that shows that the search behavior of the employed has profound aggregate implications for the unemployed. There is a strategic complementarity between active on-the-job search...

We build a novel equilibrium model in which households' labor supply choices form the link between sorting on the marriage market and sorting on the labor market. We first show that in theory, the nature of home production - whether partners' hours are complements or substitutes - shapes...

The worker-job surplus -- the sum of the worker's and the employer's net values of an employment relationship -- is the object that drives decisions in most matching models of the labor market. In this paper, we develop a theory-based empirical method to determine which of the observable worker...

This paper documents gender differences in social ties and develops a theory that links them to disparities in men's and women's labor market performance. Men's networks lead to better access to information, women's to higher peer pressure. Both affect effort in a model of teams, each beneficial...

We study the importance of firm sorting for spatial inequality. If productive locations are able to attract the most productive firms, then firm sorting acts as an amplifier of spatial inequality. We develop a novel model of spatial firm sorting, in which heterogeneous firms first choose a...