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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...
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. Negative shocks also appear to increase the earnings disadvantage of bad-looking workers. A theory of job search suggests two …
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disadvantage of bad-looking workers. A theory of job search suggests two opposite-signed mechanisms that affect these wage …
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