We develop a dynamic general equilibrium model where workers can engage in search while on the job. We show that on-the-job search is a key component in explaining labor market dynamics in models of equilibrium unemployment. The model predicts fluctuations of unemployment, vacancies, and labor...

We show how on-the-job search and the propagation of shocks to the economy are intricately linked. Rising search by employed workers in a boom amplifies the incentives of firms to post vacancies. In turn, more vacancies induce more on-the-job search. By keeping job creation costs low for firms,...

Equilibrium search theory suggests that the wage distribution in a cross section of workers is closely related to labor market transitions and associated wage changes. Accordingly, job?to?job transitions are central in explaining the wage distribution. This paper uses the IAB employment...

Using a linked employer-employee dataset and taking the perspective of individuals rather than firms, this paper analyzes some effects of joining start-ups. We show that entrants in new firms differ from those joining incumbent firms, and we use a matching approach to compare a group of...

Using two data sets derived from German administrative data, including a linked employer-employee data set, we investigate the cyclicality of worker and job °ows. The analysis stresses the importance of two-sided labour market heterogeneity in this context, taking into account both observed and...

We formulate an efficiency wage model with on-the-job search where wages depend on turnover and employers may use information on whether the searching worker is employed or unemployed as a hiring criterion. We show theoretically that ranking by employment status affects both the level and the...

Für die mikroanalytische Evaluation der Förderung der beruflichen Weiterbildung (FbW) von Arbeitslosen wird üblicherweise gefragt, ob es aufgrund der Weiterbildung zu Übergängen in neue Beschäftigungsverhältnisse gekommen ist. Arbeitsmarktpolitisch wichtig ist aber auch, welche Qualität...

This paper analyzes the importance of time aggregation in the measurement of worker flows by exploiting daily information from German administrative data. Time aggregation caused by comparing monthly labor market states leads to an underestimation of total worker flows by around 10%. Contrary to...

The beginning of the employment career is often associated with phases of unemployment. We argue that unemployment has different implications for different educational groups on future employment career depending on institutional settings in the UK and Germany. While search and matching models...

We build an analytically and computationally tractable stochastic equilibrium model of unemployment in heterogeneous labor markets. Facing search frictions within markets and reallocation frictions between markets, workers endogenously separate from employment and endogenously reallocate between...