@techreport{NBERw13777,
 title = "Marginal Jobs, Heterogeneous Firms, & Unemployment Flows",
 author = "Michael W. L. Elsby and Ryan Michaels",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "13777",
 year = "2008",
 month = "February",
 URL = "http://www.nber.org/papers/w13777",
 abstract = {This paper introduces a notion of fir m size into a search and matching model with endogenous job destruction. The outcome is a rich, yet analytically tractable framework that can be used to analyze a broad set of features of both the cross section and the dynamics of the aggregate labor market. In a set of quantitative applications we show that the model can provide a coherent account of a) the salient features of the distributions of employer size, and employment growth across establishments; b) the amplitude and propagation of cyclical fluctuations in flows between employment and unemployment; c) the negative comovement of unemployment and vacancies in the form of the Beveridge curve; and d) the dynamics of the distribution of employer size over the business cycle.},
}