EconPapers    
Economics at your fingertips  
 

Worker-Firm Screening and the Business Cycle

Jake Bradley

Review of Economic Dynamics, 2025, vol. 57

Abstract: To understand the co-movement of vacancies and employment, an equilibrium model with two-sided screening is developed. On one side of the market, both employed and unemployed workers can evaluate multiple job openings simultaneously and decide which ones to apply for. On the other side, firms assess multiple applicants and choose their preferred candidates. This model is calibrated to reflect the U.S. economy. Consistent with data, the model generates significant volatility in vacancies, unemployment, and labor market flows over the business cycle. Moreover, differences in the search behaviors of employed and unemployed workers offer a theoretical explanation for the shift in the Beveridge curve observed after the 2008 recession. (Copyright: Elsevier)

Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://dx.doi.org/10.1016/j.red.2025.101272
None

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:issued:20-388

Ordering information: This journal article can be ordered from
https://www.economic ... ription-information/

DOI: 10.1016/j.red.2025.101272

Access Statistics for this article

Review of Economic Dynamics is currently edited by Loukas Karabarbounis

More articles in Review of Economic Dynamics from Elsevier for the Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2025-03-19
Handle: RePEc:red:issued:20-388