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Efficiency and Labor Market Dynamics in a Model of Labor Selection

Sanjay Chugh and Christian Merkl

No 5474, CESifo Working Paper Series from CESifo

Abstract: This paper characterizes efficient labor-market allocations in a labor selection model. The model’s crucial aspect is cross-sectional heterogeneity for new job contacts, which leads to an endogenous selection threshold for new hires. With cross-sectional dispersion calibrated to microeconomic data, 40 percent of empirically-relevant fluctuations in the job-finding rate arise, which contrasts with results in an efficient search and matching economy. The efficient selection model’s results hold in partial and general equilibrium, as well as with sequential search.

Keywords: labor market frictions; hiring costs; sequential search; efficiency; amplification (search for similar items in EconPapers)
JEL-codes: E24 E32 J20 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: EFFICIENCY AND LABOR MARKET DYNAMICS IN A MODEL OF LABOR SELECTION (2016) Downloads
Working Paper: Efficiency and Labor Market Dynamics in a Model of Labor Selection (2015) Downloads
Working Paper: Efficiency and Labor Market Dynamics in a Model of Labor Selection (2013) Downloads
Working Paper: Efficiency and Labor Market Dynamics in a Model of Labor Selection (2011) Downloads
Working Paper: Efficiency and labor market dynamics in a model of labor selection (2011) Downloads
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