Tjaden, Volker; Wellschmied, Felix - In: American Economic Journal: Macroeconomics 6 (2014) 1, pp. 134-61
We empirically establish that one-third of job transitions leads to wage losses. Using a quantitative on-the-job search model, we find that 60 percent of them are movements down the job ladder. Accounting for them, our baseline calibration matches the large residual wage inequality in US data...