Open AccessPosted Content
Industry Dynamics and Search in the Labor Market
TLDR
In this article, the authors proposed a model of on-and off-the-job search that combines convex hiring costs and directed search, which is close in spirit to the competitive model, with a tractable and unique equilibrium.Abstract:
The paper proposes a model of on- and off-the-job search that combines convex hiring costs and directed search. Firms permanently differ in productivity levels, their production function features constant or decreasing returns to scale, and search costs are convex in search intensity. Wages are determined in a competitive manner, as firms advertise wage contracts (expected discounted incomes) so as to balance wage costs and search costs (queue length). An important assumption is that a firm is able to sort out its coordination problems with their employees in such a way that the on-the-job search behavior of workers maximizes the match surplus. Our model has several interesting features. First, it is close in spirit to the competitive model, with a tractable and unique equilibrium, and is therefore useful for empirical testing. Second, the resulting equilibrium gives rise to an efficient allocation of resources. Third, the equilibrium is characterized by a job ladder: unemployed workers search for low-productivity, low-wage firms. Workers in low-wage firms search for firms slightly higher on the productivity/ ladder, and so forth up to the workers in the second most productive firms who only apply to the most productive firms. Finally, the model rationalizes empirical regularities of on-the-job search and labor turnover. First, job-to job mobility falls with average firm tenure and firm size. Second, wages increase with firm size, and wage growth is larger in fast-growing firms.read more
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Competitive Search Equilibrium
TL;DR: In this paper, the authors construct an equilibrium for markets with frictions, which is competitive in the sense that all agents are price takers and maximize utility subject to a set of market parameters.
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The Costs of Hiring Skilled Workers
TL;DR: In this article, the authors estimate the functional form of hiring costs in the theoretical framework of a generalized model of monopsony, using both parametric and nonparametric estimation techniques, and find strong evidence in favor of diseconomies of scale in recruiting skilled workers.
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The short- and long-term career effects of graduating in a recession: hysteresis and heterogeneity in the market for college graduates
Philip Oreopoulos,Philip Oreopoulos,Philip Oreopoulos,Till von Wachter,Till von Wachter,Andrew Heisz +5 more
TL;DR: This paper analyzed the long-term effects of graduation in a recession on earnings, job mobility, and employer characteristics for a large sample of Canadian college graduates using matched university-employer-employee data from 1982 to 1999.
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Labor Market Frictions, Firm Growth, and International Trade
TL;DR: This article developed a model to study the aggregate effects of labor market frictions in a small open economy where firms grow slowly and make fixed export investments, and the model features interactions between dynamic investments in exporting and search frictions with job-to-job mobility.
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Capital Values and Job Values
TL;DR: In this paper, the authors explore how the joint behavior of hiring and investment is governed by the expected present values of capital and of jobs, and find that future returns play a dominant role in determining capital and job values.
References
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Journal ArticleDOI
Job Creation and Job Destruction in the Theory of Unemployment
TL;DR: In this paper, a job-specific shock process in the matching model of unemployment with non-cooperative wage behavior is modeled and the authors obtain endogenous job creation and job destruction processes and study their properties.
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Entry, exit, and firm dynamics in long run equilibrium
TL;DR: In this article, a dynamic stochastic model for a competitive industry is developed in which entry, exit, and the growth of firms' output and employment is determined, and conditions under which there is entry and exit in the long run are developed.
Journal ArticleDOI
Understanding Productivity: Lessons from Longitudinal Microdata
Eric J. Bartelsman,Mark Doms +1 more
TL;DR: This article reviewed research that uses longitudinal microdata to document productivity movements and examine factors behind productivity growth, including the dispersion of productivity across firms and establishments, the persistence of productivity differentials, the consequences of entry and exit, and the contribution of resource reallocation across firms to aggregate productivity growth.
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Policy distortions and aggregate productivity with heterogeneous establishments
Diego Restuccia,Richard Rogerson +1 more
TL;DR: In this paper, the authors formulate a version of the growth model in which production is carried out by heterogeneous establishments and calibrate it to US data, and argue that differences in the allocation of resources across establishments that differ in productivity may be an important factor in accounting for cross-country differences in output per capita.
Posted Content
Understanding productivity: lessons from longitudinal microdata
Eric J. Bartelsman,Mark Doms +1 more
TL;DR: The authors reviewed research that uses longitudinal microdata to document productivity movements and examine factors behind productivity growth, including the dispersion of productivity across firms and establishments, the persistence of productivity differentials, the consequences of entry and exit, and the contribution of resource reallocation across firms to aggregate productivity growth.