The Cyclical Behavior of Unemployment and Vacancies with Loss of Skills during Unemployment

Victor Ortego-Marti

No 201504, Working Papers from University of California at Riverside, Department of Economics

Abstract: This paper studies the cyclical fluctuations in unemployment and vacancies in a search and matching model in which workers lose skills during periods of unemployment. Firms’ profits fluctuate more because aggregate productivity affects the economy’s average human capital. Moreover, wages for workers with lower levels of human capital are closer to the value of non-market time, leading to more rigid wages. Fluctuations in the vacancy-unemployment ratio are larger than in the baseline search and matching model and similar to those we observe in the data.

Date: 2015-02
New Economics Papers: this item is included in nep-dge
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https://economics.ucr.edu/repec/ucr/wpaper/201504.pdf First version, 2015 (application/pdf)

Related works:
Journal Article: THE CYCLICAL BEHAVIOR OF UNEMPLOYMENT AND VACANCIES WITH LOSS OF SKILLS DURING UNEMPLOYMENT (2017)
Working Paper: The Cyclical Behavior of Unemployment and Vacancies with Loss of Skills during Unemployment (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ucr:wpaper:201504

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