In a labor market where new jobs cannot start until some time in the future, firms post vacancies in advance when productivity is high, and they post more vacancies but lower wages as the job starting time gets closer. An equilibrium wage distribution with both a continuous component and a mass...

This paper studies the dynamics of the frictional wage distribution by exploring the interaction between multiple offers and job creation. The model predicts that an increase in aggregate productivity raises the probability for an unemployed worker to receive multiple offers, which pushes firms...