Job Search Intensity and Wage Rigidity in Business Cycles

Yuki Uemura ()
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Yuki Uemura: Graduate School of Economics, Kyoto University

No 1078, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: This paper examines the job search behavior of unemployed workers over the business cycle. The paper first constructs a standard search and matching model with endogenous search efforts, wage rigidity, and a generalized matching function. Contrary to the existing literature, the proposed model generates both procyclical and countercyclical search intensity, depending on the degree of wage rigidity and the elasticity parameter of the matching function. The paper then calibrates the model to the U.S. economy and provides various impulse response analyses. The numerical exercises show that the model successfully and simultaneously reproduces countercyclical search efforts and sizable labor market fluctuations.

Keywords: search intensity; business cycles; wage rigidity; unemployment fluctuations (search for similar items in EconPapers)
JEL-codes: E24 E32 J64 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2022-04
New Economics Papers: this item is included in nep-dge, nep-lab, nep-mac and nep-ore
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