A Model of Job and Worker Flows

Ricardo Lagos and Nobuhiro Kiyotaki

No 36, 2004 Meeting Papers from Society for Economic Dynamics

Abstract: We develop a model of gross job and worker flows and use it to study how the wages and employment status of individual workers evolve over time and how they are affected by aggregate labor market conditions. We also examine the effects that labor market institutions and public policy have on the gross flows, as well as on the resulting wage distribution, employment and aggregate output in the equilibrium. The model we propose also rationalizes various other features of labor markets. For example, why do displaced workers tend to experience a significant and persistent fall in wages? Why do workers stay unemployed when on-the-job-search is at least as effective as off-the-job-search? Why is it that good jobs are not only better paid, but often also more stable? From a theoretical point of view, we study the extent to which the competitive equilibrium achieves an efficient allocation of resources

Keywords: on-the-job search; turnover (search for similar items in EconPapers)
JEL-codes: J6 (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: A model of job and worker flows (2006)
Working Paper: A Model of Job and Worker Flows (2004)
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:sed004:36

Access Statistics for this paper

More papers in 2004 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().