Department of Economics and Business - Universitat Pompeu Fabra

Title:: Returns to labor mobility. Layoff costs and quit turbulence
Authors:: Isaac Baley, Lars Ljungqvist and Thomas J. Sargent
Date:: July 2021 (Revised: August 2023)
Abstract:: Returns to labor mobility have too often escaped the attention they deserve as conduits of important forces in macro-labor models. These returns are shaped by calibrations of productivity processes that use theoretical perspectives and data sources from (i) labor economics and (ii) industrial organization. By studying how equilibrium unemployment responds to (a) layoff costs, and (b) likelihoods of skill losses following quits, we tighten calibrations of macro-labor models.
Keywords:: labor mobility, quits, turnover, layoff cost, turbulence, unemployment, human capital, matching model, search model, search-island model.
JEL codes:: E24, J63, J64
Area of Research:: Macroeconomics and International Economics

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