Gautier, Pieter; Teulings, Coen N. - 2011
We analyze a general search model with on-the-job search and sorting of heterogeneous workers into heterogeneous jobs … rate of 4-6%. We find that without search frictions, output would be between 7.5% and 18.5% higher, depending on whether or … not firms can ex ante commit to wage payments. -- search ; sorting ; wage dispersion ; on-the-job search ; unemployment …