This paper develops a dynamic model of mismatch. Workers and jobs are randomly assigned to labor markets. Each labor market clears at each instant but some have more workers than jobs, hence unemployment, and some have more jobs than workers, hence vacancies. As workers and jobs move between labor markets, some unemployed workers find vacant jobs and some employed workers lose or leave their jo...

Using data for welfare recipients who left the Temporary Assistance for Needy Families program during 1996 in Cuyahoga County (Cleveland), Ohio, the authors compare the determinants of labor market outcomes across three classes of housing assistance: those who receive a certificate or voucher, those who reside in a traditional public housing project, and those who reside in a Section 8 housing ...

Workers’ Views of the Impact of Trade on Jobs Although public policy is influenced by the perception that workers worry about the impact of trade on their jobs, there is little empirical evidence on what shapes such views. This paper uses new data to examine how workers’ perceptions of the impact of trade are related to their career paths, job characteristics, and local labor market conditions....

The objective of this paper is to determine the main factors behind poor labor market outcomes in Bulgaria. Unemployment in Bulgaria is high and of long duration. The accumulation of the unemployment stock has been caused by relatively high inflows into unemployment coupled with limited outflows. These features of the Bulgarian labor market are quite typical of other transition economies of Cen...

We build a general equilibrium model that features uninsurable idiosyncratic shocks, search frictions and an operative labor supply choice along the extensive margin. The model is calibrated to match the average levels of gross flows across the three labor market states: employment, unemployment, and non-participation. We use it to study the implications of two kinds of aggregate shocks for the...

Trade and Labor Reallocation with Heterogeneous Enforcement of Labor Regulations This paper revisits the question of how trade openness affects labor market outcomes in a developing country setting. We explore the fact that plants face varying degrees of exposure to global markets and to the enforcement of labor market regulations, and rely on Brazil’s currency crisis in 1999 as an exogenous so...