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Job Upgrading, Job Creation and Job Destruction
2002This Paper proposes and develops a dynamic matching model à la Mortensen and Pissarides (1994, 1999a, 1999b) where firms respond to idiosyncratic and aggregate shocks by upgrading, creating, and destroying jobs. By allowing firms to invest in the productivity of existing jobs, the Paper sheds light on: i) the impact of labour market policy on the ...
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