This paper develops a life-cycle approach to equilibrium unemployment. Workers only differ respectively to their distance from deterministic retirement. A non age-directed search equilibrium is then typically featured by increasing (decreasing) firing (hiring) rates with age and a hump-shaped...

This paper considers whether extending the on-the-job search model to account for endogenous search effort can help explain the shape of the wage distribution. More precisely, I show that it can be the case that the model generates hump-shaped wage distributions if preferences are non-separable...

In this paper, we argue that ¯ring decisions of ¯rms can help ex- plain the shape of the wage distribution. To emphasize this result, we consider a matching model with both idiosyncratic productivity shocks that hit jobs and heterogeneity of workers according to ex ante unob- servable...