Postel-Vinay and Robin' (2002) sequential auction model is extended to allow for aggregate productivity shocks. Workers exhibit permanent differences in ability while firms are identical. Negative aggregate productivity shocks induce job destruction by driving the surplus of matches with low...

Is labor market gender inequality due to physiological differences, labor market choices, or discrim- ination? Using novel data on all workplace sexual harassment appellate precedent from 1982-2002 and randomly assigned judges, we find that pro-plaintiff sexual harassment precedent reduced...