| Affiliation: | Royal Holloway University of London, U.KI am grateful to my late Ph.D. advisor, Dale Mortensen, for his extensive help and guidance throughout this project. I thank the editor, Guido Menzio, and three anonymous referees for very helpful comments and suggestions. I also thank Rasmus Lentz, Christopher Taber, Eva Nagypal, Gadi Barlevy, Eric French, Pieter Gautier, and seminar participants at Chicago Fed, Northwestern University, Pennsylvania State University, Purdue University, Einaudi Institute for Economics and Finance, Uppsala University, Tinbergen Institute, Aarhus University, University of Bristol, Essex University, Oxford University, and NBER Summer Institute. This research was supported by the Labour Market Dynamics and Growth (LMDG) project at Aarhus University. Finally, I want to express my special thanks to Henning Bunzel for sharing his expertise on the data—this project would not exist without his invaluable help. |
