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Heterogeneous Responses to Job Mobility Shocks in a HANK Model with a Frictional Labor Market

By Serdar Birinci, Fatih Karahan, Yusuf Mercan, and Kurt See

AEA Papers and Proceedings, May 2024

We use a heterogeneous agent New Keynesian model with a frictional labor market featuring on-the-job-search to study how job switching affects consumption decisions for individuals with different wealth levels. We find that an increased job switching rate...