Official websites use .gov
A .gov website belongs to an official government organization in the United States.
Secure .gov websites use HTTPS
A lock (
) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
Topics
Data & Maps
Surveys & Programs
Resource Library
The Alpha Beta Gamma of the Labor Market
The Alpha Beta Gamma of the Labor Market
Working Paper Number CES-22-10
Abstract
Using a large panel dataset of US workers, we calibrate a search-theoretic model of the labor market, where workers are heterogeneous with respect to the parameters governing their employment transitions. We first approximate heterogeneity with a discrete number of latent types, and then calibrate type-specific parameters by matching type-specific moments. Heterogeneity is well approximated by 3 types: αs, βs and γs. Workers of type α find employment quickly because they have large gains from trade, and stick to their jobs because their productivity is similar across jobs. Workers of type γ find employment slowly because they have small gains from trade, and are unlikely to stick to their job because they keep searching for jobs in the right tail of the productivity distribution. During the Great Recession, the magnitude and persistence of aggregate unemployment is caused by γs, who are vulnerable to shocks and, once displaced, they cycle through multiple unemployment spells before finding stable employment.
Others in Series
Working Paper
Employer Concentration and Labor Force Participation
We study the association between employer concentration and LFP and employment. LFP (employment) is strongly (weakly) negatively correlated with concentration.
Working Paper
Innovation and Appropriability: Revisiting the Role of Intellectual Property
We update and extend a set of stylized facts that has been influential for understanding of the economics of innovation.
Working Paper
The Long Run Impacts of Court-Ordered Desegregation
We conduct a national assessment of the long-run impacts of court-ordered desegregation.
Page Last Revised - April 7, 2022
✕
Is this page helpful?
Yes
No
Yes
No✕
NO THANKS
255 characters maximum
255 characters maximum reached
255 characters maximum reached
✕
Thank you for your feedback.
Comments or suggestions?
Comments or suggestions?
