Marginal Jobs, Heterogeneous Firms and Unemployment Flows

Mike Elsby; Ryan Michaels

doi:10.1257/mac.5.1.1

Marginal Jobs, Heterogeneous Firms and Unemployment Flows

Mike Elsby, Ryan Michaels

School of Economics

Research output: Contribution to journal › Article › peer-review

Abstract

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 language	English
Pages (from-to)	1-48
Journal	American Economic Journal: Macroeconomics
Volume	5
Issue number	1
DOIs	https://doi.org/10.1257/mac.5.1.1
Publication status	Published - 2013

Keywords / Materials (for Non-textual outputs)

E24
E32
J63
J64

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10.1257/mac.5.1.1

Marginal Jobs, Heterogeneous Firms and Unemployment Flows
Copyright © 2013 by the American Economic Association. Permission to make digital or hard copies of part or all of American Economic Association publications for personal or classroom use is granted without fee provided that copies are not distributed for profit or direct commercial advantage and that copies show this notice on the first page or initial screen of a display along with the full citation, including the name of the author. Copyrights for components of this work owned by others than AEA must be honored. Elsby, M., & Michaels, . R. (2013). Marginal Jobs, Heterogeneous Firms and Unemployment Flows. American Economic Journal: Macroeconomics, 5(1), 1-48, doi: 10.1257/mac.5.1.1
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Cite this

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Marginal Jobs, Heterogeneous Firms and Unemployment Flows

Abstract

Keywords / Materials (for Non-textual outputs)

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