Professor Parantap Basu parantap.basu@durham.ac.uk
Professor
Professor Parantap Basu parantap.basu@durham.ac.uk
Professor
Dr David Chivers david.chivers@durham.ac.uk
Associate Professor
Changhyun Park
Workers are failing to move to the most productive industries, despite the offer of higher wages. In order to explain this phenomenon, we provide evidence that when an industry experiences a positive, labour-productivity shock, it is subsequently harder for firms to find workers. This is represented by a fall in relative matching efficiency. We present a stylised two-sector search and matching model to show the consequences of this negative relationship. Our calibrated model not only closely tracks US wages and employment share over time, but also reveals substantial output losses as a result of labour misallocation between industries.
Basu, P., Chivers, D., & Park, C. (2024). Labour immobility between industries: Consequences for the macroeconomy. Economic Systems, 48(2), Article 101184. https://doi.org/10.1016/j.ecosys.2024.101184
Journal Article Type | Article |
---|---|
Acceptance Date | Jul 7, 2023 |
Online Publication Date | Jan 20, 2024 |
Publication Date | 2024-06 |
Deposit Date | Aug 15, 2023 |
Publicly Available Date | Jan 21, 2026 |
Journal | Economic Systems |
Print ISSN | 0939-3625 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 48 |
Issue | 2 |
Article Number | 101184 |
DOI | https://doi.org/10.1016/j.ecosys.2024.101184 |
Public URL | https://durham-repository.worktribe.com/output/1717682 |
This file is under embargo until Jan 21, 2026 due to copyright restrictions.
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