A model of job and worker flows

Nobuhiro Kiyotaki, Ricardo Lagos

    Research output: Contribution to journalArticle

    Abstract

    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.

    Original languageEnglish (US)
    Pages (from-to)770-819
    Number of pages50
    JournalJournal of Political Economy
    Volume115
    Issue number5
    DOIs
    StatePublished - Oct 2007

    Fingerprint

    Job flows
    Worker flows
    Workers
    Resources
    Random matching
    Replacement
    Job reallocation
    Unemployment duration
    Job tenure
    Efficient allocation
    Income
    Permanent income
    Hiring
    Worker turnover
    Persistence
    Competitive equilibrium

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    A model of job and worker flows. / Kiyotaki, Nobuhiro; Lagos, Ricardo.

    In: Journal of Political Economy, Vol. 115, No. 5, 10.2007, p. 770-819.

    Research output: Contribution to journalArticle

    Kiyotaki, N & Lagos, R 2007, 'A model of job and worker flows', Journal of Political Economy, vol. 115, no. 5, pp. 770-819. https://doi.org/10.1086/524203
    Kiyotaki, Nobuhiro ; Lagos, Ricardo. / A model of job and worker flows. In: Journal of Political Economy. 2007 ; Vol. 115, No. 5. pp. 770-819.
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