Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153213
Authors: 
Krause, Michael U.
Lubik, Thomas A.
Year of Publication: 
2007
Series/Report no.: 
ECB Working Paper 779
Abstract: 
We show how on-the-job search and the propagation of shocks to the economy are intricately linked. Rising search by employed workers in a boom amplifies the incentives of firms to post vacancies. In turn, more vacancies increases job search. By keeping job creation costs low for firms, on-the-job search greatly amplifies shocks. In our baseline calibration, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are close to the data, and leads output to be highly autocorrelated.
Subjects: 
business cycle
job-to-job mobility
propagation
Search and matching
worker flows Beveridge curve
JEL: 
E21
E32
J64
Document Type: 
Working Paper

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