Marginal Jobs, Heterogeneous Firms and Unemployment Flows

Mike Elsby, Ryan Michaels

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

This paper introduces a notion of firm size into a search and matching model with endogenous job destruction. The outcome is a rich, yet analytically tractable framework that can be used to analyze a broad set of features of both the cross-section and aggregate dynamics of the labor market. The model provides a coherent account of the distributions of employer size and employment growth across establishments, the amplitude and propagation of cyclical fluctuations in worker flows, the negative comovement of unemployment and vacancies, and the dynamics of the distribution of employer size over the business cycle.
Original languageEnglish
Pages (from-to)1-48
JournalAmerican Economic Journal: Macroeconomics
Volume5
Issue number1
DOIs
Publication statusPublished - 2013

Keywords / Materials (for Non-textual outputs)

  • E24
  • E32
  • J63
  • J64

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