Separation costs, job heterogeneity and labor market volatility in the matching model

@inproceedings{Silva2008SeparationCJ,
  title={Separation costs, job heterogeneity and labor market volatility in the matching model},
  author={Jos{\'e} Ignacio Silva and M Toledo},
  year={2008}
}
This paper extends the standard matching model by introducing a gap in separation costs between entrant and incumbent workers. We show that when this gap is omitted from the model, these costs do not improve the labor market volatility without introducing unrealistic unemployment responses to unemployment benefits. 
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