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Unemployment and Vacancy Fluctuations in the Matching Model: Inspecting the Mechanism: A Reprint from “Economic Quarterly”
Our Price:
$
20.00
By
Andrea Hornstein (au); Per Krusell (au); Giovanni L. Violante (au)
Year:
2005
Pages:
30
Binding
Paperback
Product Code:
1437904963
Description
The behavior of unemploy. over the bus. cycle plays an important role in economic policy considerations. Most of the variation in unemploy. comes about through changes in job-finding rates. Search theories of unemploy. study the implications of the matching process between unemployed workers and vacant jobs in environments with search frictions. The authors review work on whether these theories are consistent with the cyclical behavior of unemploy. and job-finding rates. They conclude that when the basic search model is calibrated to generate labor market volatility of a magnitude comparable with the data, it has sharp counterfactual implications for the size and the cyclicality of the wage share and for the elasticity of unemploy. to welfare benefits.
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