The aim of this master class is to give up-to-date tools to analyze labour force survey data and linked employer-employee data. The models must be dynamic to fit the individual time dimension of the data and must contain lots of heterogeneity to fit the cross-section dimension.
Topics covered will include:
1. Search and matching
1a. Search models
1b. Steady state
1c. The matching function
2. Equilibrium wages without sorting
2a. Wage posting
2b. Bargaining
2c. Sequencial auctions
3. Sorting
3a. The prototypical model of Shimer and Smith
3b. Empirical application and extensions (LMR)