Journal article


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


Publication Details
Author(s): Merkl C, Chugh S
Publisher: Wiley-Blackwell: No OnlineOpen
Publication year: 2016
Volume: 57
Journal issue: 4
Pages range: 1371-1404
ISSN: 0020-6598
Language: English

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.



Focus Area of Individual Faculties


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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