Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/141575
Authors: 
Kohlbrecher, Britta
Merkl, Christian
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9816
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.
Subjects: 
business cycle asymmetries
matching function
Beverdige curve
job-finding rate
unemployment
effectiveness of policy
JEL: 
E24
E32
J63
J64
Document Type: 
Working Paper

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