Benjamín Villena,Universidad Diego Portales
Presenta: Benjamín Villena (Ph.D. in Economics, University of Rochester; Profesor, Universidad Diego Portales)
Título: “Avoiding Layoffs: On-the-job Search and Partial Insurance” (co-autor C. Lizama)
Hora: Martes 5 de mayo, 14:00 hrs.
Abstract: Several pieces of evidence are interpreted as if workers search on-the-job to prevent a layoff, so that it is not unusual they accept wage cuts when moving to new jobs. We conceptualize these behavior as a self-insurance mechanism obtained by exerting effort. We formalize these intuitions by constructing an economy with idiosyncratic dismissal shocks and costly on-the-job search. Workers may use on-the-job search not only as a mechanism to climb the wage ladder, but also to avoid future bad shocks and hence, on-the-job search acts as an insurance mechanism. We show that consumption evolves according to a standard Euler equation in which current effort impacts the future income distribution. We solve and calibrate the model to assess its quantitative empirical performance.
Datos del Seminario
05 de Mayo, 2020 | 14:00 hrs.
Fecha de término
05 de Mayo, 2020 | 15:30 hrs.