 The Macro-dynamics of Sorting between Workers and FirmsJean-Marc Robin and Jeremy Lise No 218, 2013 Meeting Papers from Society for Economic Dynamics Abstract: We develop a stochastic model of random search on the job, with ex-ante heterogeneous workers and firms and aggregate productivity shocks in which firms make state contingent offers and counter offers to workers. The model delivers rich dynamics in which the distributions of unemployed workers, posted vacancies, and worker-firm matches evolve stochastically over time. We prove that the surplus function, which defines the value of a match and fully characterizes the mobility decision of workers, does not depend on the distributions of unemployed workers, posted vacancies or worker-firm matches. This result means that solving the model with aggregate productivity shocks becomes no more difficult than solving the stationary version. A calibrated version of the model does a good job in generating the fluctuations and co-movements with productivity of unemployment, vacancies, job-finding and job-losing rates. Date: 2013 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:red:sed013:218 Access Statistics for this paper More papers in 2013 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. |
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