A Three State Model of Worker Flows in General Equilibrium

Per Krusell, Toshihiko Mukoyama, Richard Rogerson and Aysegul Sahin

No 15251, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We develop a simple model featuring search frictions and a nondegenerate labor supply decision along the extensive margin. The model is a standard version of the neoclassical growth model with indivisible labor with idiosyncratic shocks and frictions characterized by employment loss and employment opportunity arrival shocks. We argue that it is able to account for the key features of observed labor market flows for reasonable parameter values. Persistent idiosyncratic productivity shocks play a key role in allowing the model to match the persistence of the employment and out of the labor force states found in individual labor market histories.

JEL-codes: E24 J22 J64 (search for similar items in EconPapers)
Date: 2009-08
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mac
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as Krusell, Per & Mukoyama, Toshihiko & Rogerson, Richard & Sahin, Aysegül, 2011. "A three state model of worker flows in general equilibrium," Journal of Economic Theory, Elsevier, vol. 146(3), pages 1107-1133, May.

Downloads: (external link)
http://www.nber.org/papers/w15251.pdf (application/pdf)

Related works:
Journal Article: A three state model of worker flows in general equilibrium (2011)
Working Paper: A Three State Model of Worker Flows in General Equilibrium (2009)
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:nbr:nberwo:15251

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w15251

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().