TY - JOUR
T1 - A model of job and worker flows
AU - Kiyotaki, Nobuhiro
AU - Lagos, Ricardo
N1 - Copyright:
Copyright 2011 Elsevier B.V., All rights reserved.
PY - 2007/10
Y1 - 2007/10
N2 - We develop an equilibrium search model that incorporates job-to-job transitions, exhibits instances of replacement hiring, and conceptually distinguishes between job and worker flows. We propose a notion of competitive equilibrium for random-matching environments and study the extent to which it achieves an efficient allocation of resources. The model can be used to study how the permanent incomes and employment states of individual workers evolve over time, the amount of worker turnover in excess of job reallocation, the lengths of job tenures and unemployment durations, and the size and persistence of changes in workers' incomes following displacements or job-to-job transitions.
AB - We develop an equilibrium search model that incorporates job-to-job transitions, exhibits instances of replacement hiring, and conceptually distinguishes between job and worker flows. We propose a notion of competitive equilibrium for random-matching environments and study the extent to which it achieves an efficient allocation of resources. The model can be used to study how the permanent incomes and employment states of individual workers evolve over time, the amount of worker turnover in excess of job reallocation, the lengths of job tenures and unemployment durations, and the size and persistence of changes in workers' incomes following displacements or job-to-job transitions.
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U2 - 10.1086/524203
DO - 10.1086/524203
M3 - Article
AN - SCOPUS:38949154110
VL - 115
SP - 770
EP - 819
JO - Journal of Political Economy
JF - Journal of Political Economy
SN - 0022-3808
IS - 5
ER -