TY  - RPRT
        AU  - Chugh, Sanjay K.
AU  - Merkl, Christian
        TI  - Efficiency and Labor Market Dynamics in a Model of Labor Selection
        PY  - 2015/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9291
        UR  - https://www.iza.org/index.php/publications/dp9291
        AB  - This paper characterizes efficient labor-market allocations in a labor selection model. The model's crucial aspect is cross-sectional heterogeneity for new job contacts, which leads to an endogenous selection threshold for new hires. With cross-sectional dispersion calibrated to microeconomic data, 40 percent of empirically-relevant fluctuations in the job-finding rate arise, which contrasts with results in an efficient search and matching economy. The efficient selection model's results hold in partial and general equilibrium, as well as with sequential search.
        KW  - sequential search
KW  - hiring costs
KW  - labor market frictions
KW  - labor selection
KW  - labor market
KW  - efficiency
KW  - amplification
        ER  -