The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited

Marcus Hagedorn and Iourii Manovskii

No 351, IEW - Working Papers from Institute for Empirical Research in Economics - University of Zurich

Abstract: Recently, a number of authors have argued that the standard search model cannot generate the observed business-cycle-frequency fluctuations in unemployment and job vacancies, given shocks of a plausible magnitude. We use data on the cost of vacancy creation and cyclicality of wages to identify the two key parameters of the model - the value of non-market activity and the bargaining weights. Our calibration implies that the model is, in fact, consistent with the data.

Keywords: Search; Matching; Business Cycles; Labor Markets (search for similar items in EconPapers)
JEL-codes: E24 E32 J41 J63 J64 (search for similar items in EconPapers)
Date: 2007-12
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Related works:
Journal Article: The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited (2008)
Working Paper: The cyclical behavior of equilibrium unemployment and vacancies revisited (2008)
Working Paper: The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:zur:iewwpx:351

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