camerer/ss280/jovanonicjpe79.pdf · there is spurious correlation between job tenure (length) and...
TRANSCRIPT
Peter Bossaerts
There is spurious correlation between job tenure (length) and separation probabilities - he corrects for that!
Peter Bossaerts
Two sided: mp differs for employer AND employee
Peter Bossaerts
Model of EXPERIENCE, not inspection (in latter case, signaling/screening could be used)
Peter Bossaerts
Workers are homogeneous - only luck determines the outcomes?! CANNOT explain correlation of tenure over time
Peter Bossaerts
There are NO involuntary layoffs. Firms always make zero profits. They do NOT have to scale down.
Peter Bossaerts
Now he introduces heterogeneity: some workers quit earlier because it's less costly.
Peter Bossaerts
This is the BS equation.
Peter Bossaerts
This is optimal exercise of perpetual put options
Peter Bossaerts
Pretty crude approximation!
Peter Bossaerts
First passage time...
Peter Bossaerts
In economy as a whole, wages grow.
