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A structural model of US aggregate job flows
Author(s) -
Collard Fabrice,
Fève Patrick,
Langot François,
Perraudin Corinne
Publication year - 2002
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.644
Subject(s) - aggregate (composite) , matching (statistics) , externality , econometrics , economics , distribution (mathematics) , process (computing) , computer science , microeconomics , mathematics , statistics , mathematical analysis , materials science , composite material , operating system
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.