Moon, Weh-Sol - In: KDI-journal of economic policy 47 (2025) 4, pp. 1-34
This paper extends the three-state model of labor supply and worker flows developed by Krusell, Mukoyama, Rogerson and Şahin (American Economic Review, 2017) to study dynamic individual behavior by allowing for ex-ante heterogeneity in workers' abilities in the market and in their valuation of...