Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/120941
Authors: 
Chugh, Sanjay K.
Merkl, Christian
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9291
Abstract: 
This paper 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 endogenous selection threshold for new hires. With cross-sectional dispersion calibrated to microeconomic data, 40 percent 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.
Subjects: 
sequential search
hiring costs
labor market frictions
labor selection
labor market
efficiency
amplification
JEL: 
E24
E32
J20
Document Type: 
Working Paper

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