Resum:
We 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-firm 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 fit better
some observables of the model, the changes we introduce are nontrivial
for the analysis of policies as well.