Productivity dispersion across firms is large and persistent, and worker reallocation among firms is an important source of productivity growth. An equilibrium model of growth and firm evolution designed to clarify the role of worker reallocation in the growth process is studied. We show that it...

In this paper, I analyze a general equilibrium on-the-job search model with endogenous search intensity and heterogenous workers and firms. I provide proof of existence and uniqueness of steady state equilibrium. In equilibrium equally efficient search on and off the job and supermodularity of...