In this paper we develop a model capturing key features of the Roy model, a search model, compensating differentials … the job match obtained by search frictions varies from around 9% to around 29% depending on how we account for other … features. Compensating differentials and search are both very important for explaining other features of the data such as the …

The paper studies human capital accumulation over workers' careers in an on the job search setting with heterogenous …

analyze data from the SIPP and find that the wages for new hires coming from unemployment are no more cyclical than those of … with sticky wages via staggered contracting, on-the-job search, and variable match quality, and show that it can account …

unemployment. We show that heterogeneity, reflecting differences in match quality and worker assets, reduces the extent of … fluctuations in separations and unemployment. We find that the model faces a trade-off--it cannot produce both realistic dispersion … in wage growth across workers and realistic cyclical fluctuations in unemployment …

New data compel a new view of events in the labor market during a recession. Unemployment rises almost entirely because … finding from new data is that a large fraction of workers departing jobs move to new jobs without intervening unemployment. I … of the high magnitude actually observed. In the standard theory developed over the past two decades, the wage moves to …

similarity of the pattern of segmentation across 66 different countries. The paper goes on to consider how unemployment might be … understood in a labor market segmentation framework. Existing models of unemployment in a dual labor market suggest that … unemployment should be concentrated among those who are ultimately employed in high wage jobs. In fact, unemployment seems to be …

Recent critiques have demonstrated that existing attempts to account for the unemployment volatility puzzle of search … reproduces the observed fluctuations in unemployment because hiring a worker is a risky investment with long-duration surplus … benefit from creating new matches greatly drops, leading to a large decline in job vacancies and an increase in unemployment …

equivalent workers fall sharply as unemployment duration progresses. We use the model to quantitatively assess the consequences … of such employer behavior for job finding rates and long term unemployment and find only modest effects given the large … dependence and long term unemployment …

employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of …). Accordingly, the efficient unemployment rate is the geometric average of the unemployment and vacancy rates: u* = √uv. We compute …