A Model of Job and Worker Flows
Abstract
We develop a model of gross job and worker flows and use it to study how the wages and employment status of individual workers evolve over time and how they are affected by aggregate labor market conditions. We also examine the effects that labor market institutions and public policy have on the gross flows, as well as on the resulting wage distribution, employment and aggregate output in the equilibrium. The model we propose also rationalizes various other features of labor markets. For example, why do displaced workers tend to experience a significant and persistent fall in wages? Why do workers stay unemployed when on-the-job-search is at least as effective as off-the-job-search? Why is it that good jobs are not only better paid, but often also more stable? From a theoretical point of view, we study the extent to which the competitive equilibrium achieves an efficient allocation of resourcesDownload Info
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Bibliographic Info
Paper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number 36.Length:
Date of creation: 2004
Date of revision:
Handle: RePEc:red:sed004:36
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Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
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Related research
Keywords: on-the-job search; turnover;Other versions of this item:
- Nobuhiro Kiyotaki & Ricardo Lagos, 2007. "A Model of Job and Worker Flows," Journal of Political Economy, University of Chicago Press, vol. 115(5), pages 770-819, October.
- Nobuhiro Kiyotaki & Ricardo Lagos, 2006. "A model of job and worker flows," Staff Report 358, Federal Reserve Bank of Minneapolis.
- Nobuhiro Kiyotaki & Ricardo Lagos, 2004. " A Model of Job and Worker Flows," CDMA Conference Paper Series 0403, Centre for Dynamic Macroeconomic Analysis.
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Ricardo Lagos & Guillaume Rocheteau, 2008.
"Liquidity in asset markets with search frictions,"
Staff Report
408, Federal Reserve Bank of Minneapolis.
- Ricardo Lagos & Guillaume Rocheteau, 2009. "Liquidity in Asset Markets With Search Frictions," Econometrica, Econometric Society, vol. 77(2), pages 403-426, 03.
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- Shintaro Yamaguchi, 2010.
"Job Search, Bargaining, and Wage Dynamics,"
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- Shintaro Yamaguchi, 2006. "Job Search, Bargaining, and Wage Dynamics," 2006 Meeting Papers 54, Society for Economic Dynamics.
- Shintaro Yamaguchi, 2007. "Job Search, Bargaining, and Wage Dynamics," Department of Economics Working Papers 2007-03, McMaster University.
- Shintaro Yamaguchi, 2009. "Job Search, Bargaining, and Wage Dynamics," Global COE Hi-Stat Discussion Paper Series gd08-026, Institute of Economic Research, Hitotsubashi University.
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