We estimate life-cycle transition probabilities between employment, unemployment and inactivity for U.S. workers. We assess the importance of each worker flow to account for participation and unemployment rates over the life-cycle. We find that inactivity exit and entry matter, but the...

This paper develops a general equilibrium model of nonsequential employer search with recruiting selection and heterogeneous workers, and characterizes its equilibrium. Unlike standard search models, employers can simultaneously meet several applicants and choose the best candidate. Recruiting...

In this paper I introduce a novel source of residual wage dispersion. In the model, workers are heterogenous in productivity and randomly apply to ex ante identical posted vacancies. Each employer simultaneously meets several applicants, offers the position to the best candidate and bargains...