The objective of this paper is to construct and quantitatively assess an equilibrium search model with on-the-job search and human capital accumulation. In the model workers enter the labour market with different abilities and firms differ in their labour productivities. Wages are disperse...

This paper demonstrates the way in which episodes of hot and cold trading activity can occur in a stock-flow matching market. A market experiences high entry and turnover when potential sellers enter the market knowing that buyers went unsatisfied in the previous trading opportunity. Provided...