Directed Search over the Life Cycle
Guido Menzio,
Irina Telyukova (irina.a.telyukova@gmail.com) and
Ludo Visschers
Review of Economic Dynamics, 2016, vol. 19, 38-62
Abstract:
We develop a life-cycle model of the labor market in which different worker-firm matches have different quality and the assignment of the right workers to the right firms is time consuming because of search and learning frictions. The rate at which workers move between unemployment, employment and across different firms is endogenous because search is directed and, hence, workers can choose whether to seek low-wage jobs that are easy to find or high-wage jobs that are hard to find. We calibrate our theory using data on labor market transitions aggregated across workers of different ages. We validate our theory by showing that it predicts quite well the pattern of labor market transitions for workers of different ages. Finally, we use our theory to decompose the age profiles of transition rates, wages and productivity into the effects of age variation in work-life expectancy, human capital and match quality. (Copyright: Elsevier)
Keywords: Directed search; Labor reallocation; Lifecycle (search for similar items in EconPapers)
JEL-codes: E24 J63 J64 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (64)
Downloads: (external link)
http://dx.doi.org/10.1016/j.red.2015.03.002
Access to full texts is restricted to ScienceDirect subscribers and institutional members. See http://www.sciencedirect.com/ for details.
Related works:
Software Item: Code and data files for "Directed Search over the Life Cycle" (2015) 
Working Paper: Directed Search over the Life Cycle (2015) 
Working Paper: Directed Search over the Life Cycle (2015) 
Working Paper: Directed search over the life cycle (2012) 
Working Paper: Directed Search over the Life Cycle (2012) 
Working Paper: Directed Search over the Life Cycle (2012) 
Working Paper: Directed search over the life cycle (2011) 
Working Paper: Directed Search over the Life Cycle (2010) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:red:issued:14-237
Ordering information: This journal article can be ordered from
https://www.economic ... ription-information/
red@elsevier.com
DOI: 10.1016/j.red.2015.03.002
Access Statistics for this article
Review of Economic Dynamics is currently edited by Loukas Karabarbounis
More articles in Review of Economic Dynamics from Elsevier for the Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann (chuichuiche@gmail.com).