Sector Labour Flows
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Series
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Speaker(s)Carlos Carillo-Tuleda (University of Essex, United Kingdom)
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FieldMacroeconomics
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LocationTinbergen Institute, Campus Roeterseiland, E1.17
Amsterdam -
Date and time
March 12, 2026
16:00 - 17:15
Abstract
A central challenge in labour economics is understanding which barriers limit worker reallocation across sectors, and how binding these constraints are relative to other determinants of labour market equilibrium. This paper develops a multi-sector equilibrium search model to decompose the drivers of observed sectoral employment flows into three channels: endogenous worker search behaviour, firm vacancy creation, and structural reallocation frictions. We apply the calibrated model to two policy questions: first, we quantify how search behaviour, vacancy posting, and reallocation frictions interact to amplify or dampen sectoral employment responses to large shocks like COVID-19; second, we simulate minimum wage increases and show that the aggregate impacts are strongly mediated by changes in worker search direction.