Three Studies on Job Fi nding Rate Heterogeneity in Macroeconomics
This thesis consist s of three chapters, each addressing a distinct topic in the macroeco nomics of the U.S. labor market. The unifying theme across all chapte rs is the heterogeneity in workers' job finding rates. The first chap ter builds a theoretical model of the labor market to explain why the aggregate job finding rate continues to adjust slowly after a recess ion ends, as observed in the data. The key features of the model that explain this pattern are a pro-cyclical composition effect in the ag gregate job finding rate and the gradual updating of firms’ beliefs about worker quality. The second chapter provides empirical evidence on how search disincentives – arising from temporary layoffs and u nemployment insurance – impact the observed relationship between wo rkers’ exit rates to new jobs and unemployment duration. The findin gs show that search disincentives mask the decrease in exit rates to new jobs with unemployment duration. The third chapter examines how w age losses among the long-term unemployed affect retirement decisions . Using both theoretical and quantitative analysis, it demonstrates t hat the timing of wage losses is crucial: losses late in the career l ead to earlier retirement, while losses early in the career delay it.
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DESCRIPTION: This thesis consists of three chapters, each addressing a distinct topic in the macroeconomics of the U.S. labor market. The u nifying theme across all chapters is the heterogeneity in workers' jo b finding rates. The first chapter builds a theoretical model of the labor market to explain why the aggregate job finding rate continues to adjust slowly after a recession ends, as observed in the data. The key features of the model that explain this pattern are a pro-cyclic al composition effect in the aggregate job finding rate and the gradu al updating of firms’ beliefs about worker quality. The second chap ter provides empirical evidence on how search disincentives – arisi ng from temporary layoffs and unemployment insurance – impact the o bserved relationship between workers’ exit rates to new jobs and un employment duration. The findings show that search disincentives mask the decrease in exit rates to new jobs with unemployment duration. T he third chapter examines how wage losses among the long-term unemplo yed affect retirement decisions. Using both theoretical and quantitat ive analysis, it demonstrates that the timing of wage losses is cruci al: losses late in the career lead to earlier retirement, while losse s early in the career delay it. More information on the thesis Three Studies on Job Finding Rate Heterogeneity in Macroeconomics END:VEVENT END:VCALENDAR