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A structural model for US aggregate job flows

Fabrice Collard (), Patrick Fève, Francois Langot () and Corinne Perraudin

CEPREMAP Working Papers (Couverture Orange) from CEPREMAP

Abstract: Recent studies have highlighted the existence of asymmetries in employment dynamics. This paper contributes to the analysis of this dynamics through the explicit modelling of its two components -job creations and job destructions. We propose a simple matching model extended for endogenous separation and tractable heterogeneity. The parameters of the model are estimated using a simulation-based estimation method. We then test the ability of trade externalities, generated by the matching process, to (i) propagate sectoral shocks in the whole labor market and (ii) generate the observed asymmetries in aggregate job flows. The results clearly indicate that the model is able to match the observed asymmetries in US aggregate job flows.

JEL-codes: C51 E24 E32 (search for similar items in EconPapers)
Date: 1999
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