Hagedorn, Marcus; Manovskii, Iourii - In: American Economic Review 103 (2013) 2, pp. 771-803
We consider a model with on-the-job search where current wages depend only on current aggregate labor market conditions and idiosyncratic match-specific productivities. We show theoretically that the model replicates the findings in Bils (1985) and Beaudry and DiNardo (1991) on the history...