Low, Hamish; Meghir, Costas; Pistaferri, Luigi - In: American Economic Review 100 (2010) 4, pp. 1432-67
We specify a life-cycle model of consumption, labor supply and job mobility in an economy with search frictions. We distinguish different sources of risk, including shocks to productivity, job arrival, and job destruction. Allowing for job mobility has a large effect on the estimate of...