Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/148263
Authors: 
Papp, Tamás K.
Year of Publication: 
2015
Series/Report no.: 
Reihe Ökonomie / Economics Series, Institut für Höhere Studien (IHS) 318
Abstract: 
We show that a general class of frictional labor market models with a participation margin and an individual-specific state can only match labor market transition rates within a certain range, which we characterize analytically. Transition rates in the data are outside the range the model can match, which explains the failure of previous papers to calibrate to these flows. We also examine whether extending the model can bring it closer to the data, and find that endogenous search intensity and state-dependent separation rates do not help, but misclassification, persistently inactive workers, and modifications of the productivity process such as learning on the job can match the gross flows.
Document Type: 
Working Paper

Files in This Item:
File
Size
718.62 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.