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Author: Lise, Jeremy
Resulting in 3 citations.
1. Lise, Jeremy
On-the-Job Search and Precautionary Savings
Review of Economic Studies 80,3 (July 2013): 1086-1113.
Also: http://restud.oxfordjournals.org/content/80/3/1086.abstract
Cohort(s): NLSY79
Publisher: Oxford University Press
Keyword(s): Earnings; Job Search; Risk-Taking; Savings; Wage Dynamics; Wage Growth; Wage Levels; Wealth

Permission to reprint the abstract has not been received from the publisher.

In this article, I develop and estimate a model of on-the-job search in which risk averse workers choose search effort and can borrow or save using a single risk free asset. I derive the implications for optimal savings behaviour in this environment and relate this to the frictions that characterize the endogenous earnings process implied by on-the-job search. Savings behaviour depends in a very intuitive way on the rate at which offers are received, the rate at which jobs are destroyed, and a worker's current rank in the wage distribution. The implication is that workers, who are identical in terms of preferences and opportunities, have substantially different savings behaviour depending on their history and current position in the wage distribution. The mechanism that generates the substantial differences in savings behaviour in the model is the dynamic of the “wage ladder” resulting from the search process. There is an important asymmetry between the incremental wage increases generated by on-the-job search (climbing the ladder) and the drop in income associated with job loss (falling off the ladder). The behaviour of workers in low paying jobs is primarily governed by the expectation of wage growth, while the behaviour of workers near the top of the distribution is driven by the possibility of job loss. The distributions of earnings, wealth, and consumption implied by the model (suitably aggregated) align reasonably well with the data, with the notable exception of implying substantially less concentration of wealth among the richest one percent of the population.
Bibliography Citation
Lise, Jeremy. "On-the-Job Search and Precautionary Savings." Review of Economic Studies 80,3 (July 2013): 1086-1113.
2. Lise, Jeremy
Meghir, Costas
Robin, Jean-Marc
Matching, Sorting and Wages
Review of Economic Dynamics 19 (January 2016): 63-87.
Also: http://www.sciencedirect.com/science/article/pii/S109420251500071X
Cohort(s): NLSY79
Publisher: Society for Economic Dynamics
Keyword(s): Employment, History; Job Search; Modeling; Wage Determination

Permission to reprint the abstract has not been received from the publisher.

We develop an empirical search-matching model which is suitable for analyzing the wage, employment and welfare impact of regulation in a labor market with heterogeneous workers and jobs. To achieve this we develop an equilibrium model of wage determination and employment which extends the current literature on equilibrium wage determination with matching and provides a bridge between some of the most prominent macro models and microeconometric research. The model incorporates productivity shocks, long-term contracts, on-the-job search and counter-offers. Importantly, the model allows for the possibility of assortative matching between workers and jobs due to complementarities between worker and job characteristics. We use the model to estimate the potential gain from optimal regulation and we consider the potential gains and redistributive impacts from optimal unemployment benefit policy. Here optimal policy is defined as that which maximizes total output and home production, accounting for the various constraints that arise from search frictions. The model is estimated on the NLSY using the method of moments.
Bibliography Citation
Lise, Jeremy, Costas Meghir and Jean-Marc Robin. "Matching, Sorting and Wages." Review of Economic Dynamics 19 (January 2016): 63-87.
3. Lise, Jeremy
Meghir, Costas
Robin, Jean-Marc
Mismatch, Sorting and Wage Dynamics
Working Paper W13/16, Institute for Fiscal Studies (IFS), Economic and Social Research Council, January 2013.
Also: http://www.ifs.org.uk/wps/wp201316.pdf
Cohort(s): NLSY79
Publisher: Institute for Fiscal Studies (IFS), London
Keyword(s): Employment; Modeling; Unemployment Insurance; Wage Determination

Permission to reprint the abstract has not been received from the publisher.

We develop an empirical search-matching model which is suitable for analyzing the wage, employment and welfare impact of regulation in a labor market with heterogeneous workers and jobs. To achieve this we develop an equilibrium model of wage determination and employment which extends the current literature on equilibrium wage determination with matching and provides a bridge between some of the most prominent macro models and microeconometric research. The model incorporates productivity shocks, long-term contracts, on-the-job search and counter-offers. Importantly, the model allows for the possibility of assortative matching between workers and jobs due to complementarities between worker and job characteristics. We use the model to estimate the potential gain from optimal regulation and we consider the potential gains and redistributive impacts from optimal unemployment insurance policy. The model is estimated on the NLSY using the method of moments.
Bibliography Citation
Lise, Jeremy, Costas Meghir and Jean-Marc Robin. "Mismatch, Sorting and Wage Dynamics." Working Paper W13/16, Institute for Fiscal Studies (IFS), Economic and Social Research Council, January 2013.