A structural model of US aggregate job flows
Article first published online: 31 MAY 2002
Copyright © 2002 John Wiley & Sons, Ltd.
Journal of Applied Econometrics
Volume 17, Issue 3, pages 197–223, May/June 2002
How to Cite
Collard, F., Fève, P., Langot, F. and Perraudin, C. (2002), A structural model of US aggregate job flows. J. Appl. Econ., 17: 197–223. doi: 10.1002/jae.644
- Issue published online: 31 MAY 2002
- Article first published online: 31 MAY 2002
- Manuscript Revised: 1 JUN 2001
- Manuscript Received: 16 JUN 1999
This paper contributes to the analysis of jobs flows dynamics through the explicit modelling of job creations and job destructions. We propose a simple matching model extended for endogenous separation and tractable heterogeneity. The parameters of the model are estimated using a simulation-based estimation method. We then test the ability of trade externalities, generated by the matching process, to (i) propagate reallocation and aggregate disturbances in the whole labor market and (ii) generate the observed distribution of aggregate job flows. The results clearly indicate that the model is able to match the dynamics of US aggregate job flows. Copyright © 2002 John Wiley & Sons, Ltd.