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Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board , Washington , D . C . Demand-driven Job Separation : Reconciling Search Models with the Ins and Outs of Unemployment Regis Barnichon
| Content Provider | Semantic Scholar |
|---|---|
| Author | Barnichon, Régis |
| Copyright Year | 2009 |
| Abstract | This paper presents a search model of unemployment with a new mechanism of job separation based on rmsdemand constraints. The model is consistent with the cyclical behavior of labor market variables and can account for three stylized facts about unemployment that the Mortensen-Pissarides (1994) model has di¢ culties explaining jointly: (i) the unemployment-vacancy correlation is negative, (ii) the contribution of the job separation rate to unemployment uctuations is small but non-trivial, (iii) movements in the job separation rate are sharp and short-lived while movements in the job nding rate are persistent. In addition, the model can rationalize two hitherto unexplained ndings: why unemployment inows were less important in the last two decades, and why the asymmetric behavior of unemployment weakened after 1985. JEL classi cations: J63, J64, E24, E32 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://www.federalreserve.gov/pubs/feds/2009/200924/200924pap.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
