We develop an equilibrium search model of the labor market in which firms cannot observe worker quality prior to interviewing. Upon meeting an applicant, firms can interview workers at a cost to learn their type. Less productive workers are more likely to be turned away after an interview so...

Job loss translates into large and persistent earnings reductions. Using a large administrative dataset from Germany, I document that this reflects both a reduced employment rate and reduced wages, with the recovery in wages being particularly slow. To account for these facts, I build a search...

An empirical consensus suggests that there are small employment effects of minimum wage increases. This paper argues that these are short-run elasticities. Long-run elasticities, which may differ from short-run elasticities, are policy relevant. This paper develops a dynamic industry equilibrium...

We document two new facts about the market-level response to minimum wage hikes: firm exit and entry both rise. These results pose a puzzle: canonical models of firm dynamics predict that exit rises but that entry falls. We develop a model of firm dynamics based on putty-clay technology and show...