On the Dynamics of Unemployment and Wage Distributions

  • JEAN-MARC ROBIN, Postel-Vinay
  • Published 2010

Abstract

Postel-Vinay and Robin’s (2002) sequential auction model is extended to allow for aggregate productivity shocks. Workers exhibit permanent differences in ability while firms are identical. Negative aggregate productivity shocks induce job destruction by driving the surplus of matches with low ability workers to negative values. Endogenous job destruction… (More)

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