Do workers sort more randomly across different job types when jobs are harder to find? To answer this question, we study the mobility of male workers among three-digit occupations in the matched files of the monthly Current Population Survey over the 1979-2004 period. We clean individual...

Do workers sort more randomly across different job types when jobs are harder to find? To answer this question, we study the mobility of male workers among three-digit occupations in the matched files of the monthly Current Population Survey over the 1979-2004 period. We clean individual...

We provide new evidence that large firms or establishments are more sensitive than small ones to business cycle conditions. Larger employers shed proportionally more jobs in recessions and create more of their new jobs late in expansions, both in gross and net terms. The differential growth rate...

We investigate the evolution and the sources of aggregate employment reallocation in the United States in the 1971-2000 March files of the Current Population Survey. We focus on the annual flows of male workers across occupations at the Census 3-digit level, the finest disaggregation at which a...

We revisit measurement of Employer-to-Employer (EE) transitions, the main engine of labor market competition and employment reallocation, in the monthly Current Population Survey (CPS). We follow Fallick and Fleischman (2004) and exploit a key survey question introduced with the 1994 CPS...

This paper produces a comprehensive theory of the value of Bayesian information and its static demand. Our key insight is to assume 'natural units' corresponding to the sample size of conditionally i.i.d. signals -- focusing on the smooth nearby model of the precision of an observation of a...

We study aggregate equilibrium dynamics of a frictional labor market where firms post employment contracts and workers search randomly on and off the job for such contracts, while the economy is hit by aggregate productivity shocks. Our exercise provides the first analysis of aggregate dynamics...

This paper presents an analysis of moral hazard in On-the-Job Search (OJS) in an equilibrium setting. In a frictional labor market, when an employee receives an outside offer, her employer is naturally tempted to compete against it to save the cost of hiring a replacement. Casual observation in...

Recessions are times of increased uncertainty and volatility at the micro level. This widely documented empirical pattern has been interpreted as the effect of uncertainty shocks, mediated by various frictions, on aggregate economic activity. We explore the hypothesis that the causation runs the...

We study the design of optimal incentives in a two-player dynamic contest. Two players continuously spend costly effort to attain a score lead, which is also affected by noise. The first player to reach a predetermined score difference (finish line) wins a prize. We focus on the choice of the...