Separation Costs, Job Heterogeneity and Labor Market Volatility in the Matching Model Articles uri icon

authors

  • SILVA, JOSE I.
  • TOLEDO, MANUEL

publication date

  • October 2008

start page

  • 77

end page

  • 79

issue

  • 1

volume

  • 101

International Standard Serial Number (ISSN)

  • 0165-1765

Electronic International Standard Serial Number (EISSN)

  • 1873-7374

abstract

  • This paper extends the standard matching model by introducing a gap in separation costs between entrant and incumbent workers. We show that when this gap is omitted from the model, these costs do not improve the labor market volatility without introducing unrealistic unemployment responses to unemployment benefits.