Heterogeneity and Cyclical Unemployment
Yongsung Chang () and
Sun-Bin Kim ()
No 543, RCER Working Papers from University of Rochester - Center for Economic Research (RCER)
We model worker heterogeneity in the rents from being employed in a Diamond-Mortensen-Pissarides model of matching and unemployment. We show that heterogeneity, reflecting differences in match quality and worker assets, reduces the extent of fluctuations in separations and unemployment. We find that the model faces a trade-off-it cannot produce both realistic dispersion in wages across workers and realistic cyclical fluctuations in unemployment.
New Economics Papers: this item is included in nep-dge and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://rcer.econ.rochester.edu/RCERPAPERS/rcer_543.pdf full text (application/pdf)
Working Paper: Heterogeneity and Cyclical Unemployment (2009)
Working Paper: Heterogeneity and Cyclical Unemployment (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:roc:rocher:543
Access Statistics for this paper
More papers in RCER Working Papers from University of Rochester - Center for Economic Research (RCER) University of Rochester, Center for Economic Research, Department of Economics, Harkness 231 Rochester, New York 14627 U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by Richard DiSalvo ().