Standard search models are unreliable for structural inference of the underlying sources of wage inequality because they are inconsistent with observed residual wage dispersion. We address this issue by modeling skill development and duration dependence in unemployment benefits in a random on...

Standard search models are inconsistent with the amount of frictional wage dispersion found in U.S. data. We resolve this apparent puzzle by modeling skill development (learning by doing on the job, skill loss during unemployment) and duration dependence in unemployment benefits in a random on...

This paper studies wage effects and job mobility as a result of skill mismatch in worker- occupation pairs. I develop a Roy model in which learning on the job induces workers to shift more time towards job-specific activities. Using a short task panel containing data on worker’s time...

This paper analyzes the process of entry of highly skilled immigrants into the Israeli labor market, using panel data on several cohorts of recent immigrants from the former USSR. The study develops and estimates an on-the-job search model, cast as a finite horizon, discrete choice dynamic...

This paper analyzes the process of entry of highly skilled immigrants into the Israeli labor market, using panel data on several cohorts of recent immigrants from the former USSR. The study develops and estimates an on-the-job search model, cast as a finite horizon, discrete choice dynamic...

Standard search models are inconsistent with the amount of frictional wage dis- persion found in U.S. data. We resolve this apparent puzzle by modeling skill development (learning by doing on the job, skill loss during unemployment) and duration dependence in unemployment benefits in a random on...