The global dynamics of an equilibrium model of aggregate unemployment that focuses on the job/worker matching process is studied for the case of increasing returns to scale in production and constant returns to scale in the matching process. In anticipation of a particular solution to the wage...

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...