We analyse an equilibrium labour market with on-the-job search and experience effects (where workers learn-by-doing). The analysis yields a standard Mincer wage equation with worker fixed effects and endogenously determined firm fixed effects. It shows that learning-by-doing increases...

This paper identifies a data-consistent, equilibrium model of unemployment, wage dispersion, quit turnover and firm growth dynamics. In a separating equilibrium, more productive firms signal their type by paying strictly higher wages in every state of the market. Workers optimally quit to firms...

In Britain about 7% of male employees and 10% of female employees are in temporary jobs. In contrast to much of continental Europe, this proportion has been relatively stable over the 1990s. Using data from the British Household Panel Survey, we find that temporary workers report lower levels of...