Labour mobility may be caused by shifts in the derived demand for labour on the part of firms or sectors, or it may be caused by mismatches between workers and their jobs. Both reasons may be important, and this paper merges them into one model. It explores the consequences for (a) wage-tenure relationships and (b) the issue of sluggishness of wages caused by the implied selectivity of workers into preferred jobs and sectors.
ASJC Scopus subject areas
- Economics and Econometrics