Over the past 50 years, the U.S. and several European labor markets have undergone two most incisive developments: job market polarization and deunionization. In this paper, we argue that routine-biased technical change is not only the driving force behind polarization, as prevalently assumed,...

Over the recent decades, wide-spread automation has led to a shift of the US labor force from occupations intensive in routine tasks into occupations intensive in manual and abstract tasks. I integrate routine-biased technological change into an incomplete markets model with occupation-specific...

This paper studies match formation and dissolution in frictional marriage markets under labor market uncertainty. We propose a search model with transferable utility in which ex-ante heterogeneous men and women simultaneously search for partners in the marriage market and switch between...

This paper addresses the large degree of frictional wage dispersion in US data. The standard job matching model without on-the-job search cannot replicate this pattern. With on-the-job search, however, unemployed job searchers are more willing to accept low wage offers since they can continue to...

This paper examines the labour market matching process by distinguishing its two component stages: the contact stage, in which job searchers make contact with employers and the selection stage, in which they decide whether to match. We construct a theoretical model explaining two-sided selection...

The aim of this paper is to develop a spatial model that explicitly incorporates the different types of knowledge spillovers taking place in cities and to show how they affect the migration decision of individuals and the size of cities. We use a static general equilibrium framework with two...