Job Upgrading, Job Creation and Job Destruction
AbstractThis Paper proposes and develops a dynamic matching model à la Mortensen and Pissarides (1994, 1999a, 1999b) where firms respond to idiosyncratic and aggregate shocks by upgrading, creating, and destroying jobs. By allowing firms to invest in the productivity of existing jobs, the Paper sheds light on: i) the impact of labour market policy on the economy’s rates of job upgrading, job creation and job destruction; ii) the impact of labour market policy on the response of the job upgrading rate to aggregate shocks and on the cyclicality of the job upgrading rate; and iii) the impact of training policy on labour market equilibrium outcomes.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3616.
Date of creation: Oct 2002
Date of revision:
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Find related papers by JEL classification:
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-03-14 (All new papers)
- NEP-LAB-2003-03-14 (Labour Economics)
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