We develop a continuous-time model of career concerns that incorporates human capital accumulation throughout the working life. Workers are able to generate an output that follows a diffusion process with a drift that is the sum of effort and ability ("talent"). Talent corresponds to a hidden...

This paper constructs and estimates a career decision model where individuals search for both career matching and employer matching to understand wage growth and career mobility using the NLSY79. It departs from previous papers in that career mobility decisions and participation decisions are...

A robust literature establishes that women experience lasting penalties to their labor market earnings after having a child, but men do not. This paper explores possible factors behind earnings penalties. We evaluate the effect of parenthood on men’s and women’s job performance, human...