Cabrales, AntonioHopenhayn, Hugo2009-01-262009-01-261998https://hdl.handle.net/10016/3493We generalize the Mortensen-Pissarides (1994) model of the labor market with a more realistic structure for the stochastic process of the shocks to the worker- rm match. In this way we can acommodate the empirical observation that hazard rates of job termination decrease and average wages increase with job tenure. Besides being able to t better some observables of the model, the changes we introduce are nontrivial for the analysis of policies as well.application/pdfengLayolf costssearchlayolf hazard rateswage-tenure relationshipworking paperJ60J30Economíaopen access