A Theory of Labor Markets with Inefficient Turnover

Andrés Blanco, Andres Drenik, Christian Moser and Emilio Zaratiegui

No 32409, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We develop a theory of labor markets with four features: search frictions, worker productivity shocks, wage rigidity, and two-sided lack of commitment. Inefficient job separations occur in the form of endogenous quits and layoffs that are unilaterally initiated whenever a worker's wage-to-productivity ratio moves outside an inaction region. We derive sufficient statistics for the labor market response to aggregate shocks based on the distribution of workers' wage-to-productivity ratios. These statistics depend on the incidence of inefficient job separations and are linked to readily available microdata on wage changes and worker flows between jobs.

JEL-codes: E31 E52 J64 (search for similar items in EconPapers)
Date: 2024-05
New Economics Papers: this item is included in nep-dge and nep-lab
Note: EFG LS ME
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.nber.org/papers/w32409.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
Working Paper: A Theory of Labor Markets with Inefficient Turnover (2024)
Working Paper: A Theory of Labor Markets with Inefficient Turnover (2023)
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:32409

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w32409
The price is Paper copy available by mail.

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 ().