Business Cycle Asymmetries and the Labor Market

Christian Merkl and Britta Kohlbrecher

VfS Annual Conference 2016 (Augsburg): Demographic Change from Verein für Socialpolitik / German Economic Association

Abstract: This paper shows that the matching function and the Beveridge curve in the United States exhibit strong nonlinearities over the business cycle. These patterns can be replicated by enhancing a search and matching model with idiosyncratic productivity shocks for new contacts. Large negative aggregate shocks move the hiring cutoff point into a part of the idiosyncratic density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our proposed mechanism is of high relevance as it leads to time varying effects of certain policy interventions.

JEL-codes: E00 E24 E32 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Related works:
Journal Article: Business cycle asymmetries and the labor market (2022)
Working Paper: Business cycle asymmetries and the labor market (2022)
Working Paper: Business Cycle Asymmetries and the Labor Market (2016)
Working Paper: Business Cycle Asymmetries and the Labor Market (2016)
Working Paper: Business cycle asymmetries and the labor market (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc16:145704

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