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Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy

  • Nezih Guner

    (Universidad Carlos III de Madrid)

  • James Tybout

    (Pennsylvania State University)

  • A. Kerem Cosar

    (Pennsylvania State University)

as in Melitz (2003). This increases firms´ incentives to hire or re workers as idiosyncratic productivity shocks occur, thereby increasing job turnover and, because of the search frictions, spreading the wage distribution. Preliminary simulations at plausible parameter values suggest that these effects can be important. Estimation of the model is in progress.

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Paper provided by Society for Economic Dynamics in its series 2009 Meeting Papers with number 811.

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Date of creation: 2009
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Handle: RePEc:red:sed009:811
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

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