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A Job Ladder Model with Stochastic Employment Opportunities

Bradley, Jake; Gottfries, Axel


Axel Gottfries


We set up a model with on-the-job search in which firms infrequently post vacancies for which workers occasionally apply. The model nests the standard job ladder and stock-flow models as special cases, while remaining analytically tractable and easy to estimate from standard panel data sets. The parameters from a structurally estimated model on US data are significantly different from either the restrictions imposed by a stock-flow or job ladder model. Imposing these restrictions significantly understates the search option associated with employment and are, unlike our model, inconsistent with recent survey evidence and declining job finding rates and starting wage with duration of unemployment, both of which are present in the data.


Bradley, J., & Gottfries, A. (2021). A Job Ladder Model with Stochastic Employment Opportunities. Quantitative Economics, 12(4), 1399-1430.

Journal Article Type Article
Acceptance Date Apr 29, 2021
Online Publication Date Nov 11, 2021
Publication Date Nov 1, 2021
Deposit Date Apr 30, 2021
Publicly Available Date Apr 30, 2021
Journal Quantitative Economics
Print ISSN 1759-7323
Electronic ISSN 1759-7331
Publisher Econometric Society
Peer Reviewed Peer Reviewed
Volume 12
Issue 4
Pages 1399-1430
Keywords on-the-job search; wage dispersion; wage posting; stock-flow JEL Classification: J31; J64 * First version: April 21; 2017 We would like to thank Vasco Carvalho; Mike Elsby; Per Krusell; Hannes Malmberg; Kurt Mitman; Fabien Postel-Vinay; Pontus Rendahl; an
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