Sensitivity of Job Destruction to Vintage and Tenure Effects

B-Tier
Journal: Scandanavian Journal of Economics
Year: 2014
Volume: 116
Issue: 4
Pages: 1068-1090

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Matching models with endogenous job destruction typically deliver excessively volatile job destruction and moderate volatility of vacancies. In our model, vintage and tenure effects promote the creation of new matches that are temporarily more productive, while reducing the survival of temporarily less productive matches. This cleansing effect produces a counter-cyclical inflow into unemployment, removes the strong response of job destruction to productivity shocks, and generates a downward-sloping Beveridge curve, as in the data. The model also generates more volatility in vacancies, the job-finding rate, and labor-market tightness.

Technical Details

RePEc Handle
repec:bla:scandj:v:116:y:2014:i:4:p:1068-1090
Journal Field
General
Author Count
2
Added to Database
2026-01-25