Experience and Worker Flows

Aspen Gorry

No 154, 2012 Meeting Papers from Society for Economic Dynamics

Abstract: This paper studies a labor market where workers have incomplete information about the quality of their employment match. The model allows past experience to provide information about the quality of a new match. Allowing workers to learn from past job experience generates a decline in job finding and job separation rates with age that is consistent with patterns found in the data. To provide evidence of this learning mechanism, the model generates a prediction that wage volatility on a new job should decline with past job experience. This decline in wage volatility is documented in data from NLSY79.

Date: 2012
New Economics Papers: this item is included in nep-cta, nep-dge and nep-lab
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Citations: View citations in EconPapers (4)

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Working Paper: Experience and Worker Flows (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed012:154

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