This study examines training investments in two-tier labor markets, focusing on the role of job match quality. Temporary workers are in general more likely than permanent workers to leave their employer and therefore are less likely to receive employer-funded training. However, as firms prefer to continue productive job matches, we hypothesize that the negative effect of holding a temporary con...

The Job Openings and Labor Turnover Survey (JOLTS) is a new data source of the Bureau of Labor Statistics that estimates monthly vacancies, hires, and separations. It has quickly become a useful tool for studying the labor market. This chapter summarizes its aggregate and micro-level evidence, including the relations of vacancies and worker flows to unemployment and other measures of labor mark...

In order to analyze the labor market through search and matching theory, we need deep parameters namely, rate of inflow to the unemployment pool and job-finding rate. In other words, these rates are primary parameters of matching function; hence, estimating these parameters is an essential step for the use of search and matching theory in every economy. In this paper, we estimate these rates of...

On the job search is a key feature of real life labor markets. Yet, traditional equilibrium unemployment theory has not been able to account for on-thejob search in a satisfactory manner. In this paper we present an equilibrium model which includes on-thejob search as an optimal response to search frictions and differences in firm productivity. Our model is laid out in detail in ongoing researc...

This paper incorporates labor search frictions into a model with lumpy investment to explain a set of …rm-size-related facts about the United States labor market dynamics over business cycles. Contrary to the predictions of standard models, we observe that job destruction is procyclical in small …rms but countercyclical in large ones. Calibrated to U.S. data, the model generates this asymmetric...

In this paper we develop a rich model that describes the labor market behavior of both unemployed and employed workers. Our job search models explicitly models endogenous job search effort and accounts for monitoring of job search behavior of unemployed workers. To estimate the model we use data from a randomized experiment conducted in the Netherlands to evaluate the effectiveness of job searc...

The housing and business cycles are clearly tied together and this has been documented in the recent literature. Our analysis of the housing and labor markets is based on a DMP model for interdependent housing and labor markets that gives rise naturally to vacancy rates in housing and labor markets. We estimate the model using data at the MSA level on housing vacancies from the US Census Bureau...

This article examines the changes to and relations between labor policy and labor legislation in the context of China’s market transition with a focus on the 1994 Labor Law and the 2007 Labor Contract Law. The initial impetus to labor policy change came from the unemployment crisis at the end of the 1970s and the early 1980s. Since then, the state has relaxed its control over labor mobility and...