The macro-dynamics of sorting between workers and firms

Jeremy Lise and Jean-Marc Robin

No W13/22, IFS Working Papers from Institute for Fiscal Studies

Abstract: We develop an equilibrium model of on-the-job search with ex-ante heterogeneous workers and firms, aggregate uncertainty and vacancy creation. The model produces rich dynamics in which the distributions of unemployed workers, vacancies and worker-firm matches evolve stochastically over time. We prove that the surplus function, which fully characterises the match value and the mobility decision of workers, does not depend on these distributions. We estimate the model on US labour market data from 1951-2007 and predict the fit for 2008-12. We use the model to measure the cyclicality of mismatch between workers and jobs.

Keywords: On-the-job search; heterogeneity; aggregate fluctuations; mis-match (search for similar items in EconPapers)
JEL-codes: E24 E32 J63 J64 (search for similar items in EconPapers)
Date: 2013-08-27
New Economics Papers: this item is included in nep-bec, nep-dge, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Related works:
Journal Article: The Macrodynamics of Sorting between Workers and Firms (2017)
Working Paper: The Macrodynamics of Sorting between Workers and Firms (2017)
Working Paper: The Macrodynamics of Sorting between Workers and Firms (2017)
Working Paper: The Macrodynamics of Sorting Between Workers and Firms (2016)
Working Paper: The Macro-dynamics of Sorting between Workers and Firms (2013)
Working Paper: The Macro-dynamics of Sorting between Workers and Firms (2013)
Working Paper: The Macrodynamics of Sorting between Workers and Firms (2012)
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