Teulings, Coen; Gautier, Pieter - Centraal Planbureau (CPB), Government of the Netherlands - 2012
The authors analyze a general search model with on-the-job search and sorting of heterogeneous workers into heterogeneous jobs.
This model yields a simple relationship between (i) the unemployment rate, (ii) the value of non-market time, and (iii) the max-mean wage differential. The latter...