The Macro-dynamics of Sorting between Workers and Firms∗


We develop an equilibrium model of on-the-job search with ex-ante heterogeneous workers and firms, aggregate uncertainty and vacancy creation. The model produces rich dynamics in which the distributions of unemployed workers, vacancies and worker-firm matches evolve stochastically over time. We prove that the surplus function, which fully characterizes the… (More)


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Citations per Year

Citation Velocity: 10

Averaging 10 citations per year over the last 3 years.

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