EFFICIENCY AND LABOR MARKET DYNAMICS IN A MODEL OF LABOR SELECTION

• 成果类型: Article
• 署名作者: Chugh, Sanjay K.; Merkl, Christian
• 署名单位: University System of Ohio; Ohio State University; Leibniz Association; Institut fur Weltwirtschaft an der Universitat Kiel (IFW); University of Erlangen Nuremberg; IZA Institute Labor Economics
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12201
• 发表日期: 2016
• 页码: 1371-1404
• 关键词: cyclical behavior; equilibrium unemployment; indivisible labor; turnover costs; job search; VACANCIES; EMPLOYMENT

摘要

This article characterizes efficient labor market allocations in a labor selection model. The model's crucial aspect is cross-sectional heterogeneity for new job contacts, which leads to an endogenousselection threshold for new hires. With cross-sectional dispersion calibrated to microeconomic data, 40% of empirically relevant fluctuations in the job-finding rate arise, which contrasts with results in an efficient search and matching economy. The efficient selection model's results hold in partial and general equilibrium, as well as with sequential search.