Resource title

On-the-job search and the cyclical dynamics of the labor market

Resource image

image for OpenScout resource :: On-the-job search and the cyclical dynamics of the labor market

Resource description

We show how on-the-job search and the propagation of shocks to the economy are intricately linked. Rising search by employed workers in a boom amplifies the incentives of firms to post vacancies. In turn, more vacancies induce more on-the-job search. By keeping job creation costs low for firms, on-the-job search greatly amplifies shocks. In our baseline calibration, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are close to the data, and leads output to be highly autocorrelated.

Resource author

Michael Krause, Thomas A. Lubik

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19692

Resource license

Adapt according to the presented license agreement and reference the original author.