EconPapers    
Economics at your fingertips  
 

Mismatch Cycles

Isaac Baley (), Ana Figueiredo and Robert Ulbricht
Additional contact information
Ana Figueiredo: Universitat Pompeu Fabra and Barcelona GSE

No 1098, 2018 Meeting Papers from Society for Economic Dynamics

Abstract: Using a recently developed worker-occupation mismatch measure for the US labor market, we document that mismatch is procyclical. However, there is substantial heterogeneity by previous employment status: mismatch is procyclical for workers in ongoing job relationships, consistent with the cleansing effect of recessions; but it is countercyclical for the flow of new hires from unemployment, consistent with the sullying effect of recessions. Our empirical findings show that the cleansing effect dominates. We also provide evidence that, conditional on mismatch, business cycle conditions at the start of the match are important in explaining variation in job duration. We explain these empirical patterns through a learning model à la Jovanovic (1979) augmented with adjustment costs and a learning technology that varies over the business cycle.

New Economics Papers: this item is included in nep-dge and nep-mac
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://economicdynamics.org/meetpapers/2018/paper_1098.pdf (application/pdf)

Related works:
Working Paper: Mismatch Cycles (2019) Downloads
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:sed018:1098

Access Statistics for this paper

More papers in 2018 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2019-11-14
Handle: RePEc:red:sed018:1098