Essays On Labor Economics

This dissertation consists of three essays in labor economics which are self-contained and can be read independently of the others. The first essay investigates the existence of unemployment hysteresis effect in two different educational levels: high school or lower and college and higher. The study employs a panel analysis of non-stationary in idiosyncratic and common components (PANIC) model to compare the stochastic nature of unemployment in the two groups. The second essay measures the mismatch unemployment in the US economy. It improves an existing model in the literature and creates a mismatch index and measures the unemployment added by the mismatch in the economy over the time. The third essay studies the quit behavior of workers in the US industries and researches the role of nominal industry wages and aggregate wages in workers' quitting decisions.