Efficiency and Labor-Market Dynamics in a Model of Labor Selection

Merkl C, Chugh S (2016)


Publication Language: English

Publication Type: Journal article

Publication year: 2016

Journal

Publisher: Wiley-Blackwell: No OnlineOpen

Book Volume: 57

Pages Range: 1371-1404

Journal Issue: 4

DOI: 10.1111/iere.12201

Abstract

This article characterizes efficient labor market allocations in a labor selection model. The model's crucial aspect is cross-sectional heterogeneity for new job contacts, which leads to an endogenousselection threshold for new hires. With cross-sectional dispersion calibrated to microeconomicdata, 40% of empirically relevant fluctuations in the job-finding rate arise, which contrasts with results in an efficient search and matching economy. The efficient selection model's results hold in partial and general equilibrium, as well as with sequential search.

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How to cite

APA:

Merkl, C., & Chugh, S. (2016). Efficiency and Labor-Market Dynamics in a Model of Labor Selection. International Economic Review, 57(4), 1371-1404. https://dx.doi.org/10.1111/iere.12201

MLA:

Merkl, Christian, and Sanjay Chugh. "Efficiency and Labor-Market Dynamics in a Model of Labor Selection." International Economic Review 57.4 (2016): 1371-1404.

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