Burdett, Ken; Carrillo-Tudela, Carlos; Coles, Melvyn - 2015
In this paper we develop and quantitatively assess a tractable equilibrium search model of the labour market to analyse … firm specific compensation, interruptions to workers' on-the-job search and due to turnover heterogeneity. A key feature is … that firms post wage-tenure contracts as an optimal response to their employees' search behaviour and human capital …