Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153287
Authors: 
Hagedorn, Marcus
Manovskii, Iourii
Year of Publication: 
2008
Series/Report no.: 
ECB Working Paper 853
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.
Subjects: 
business cycles
labor markets
Matching
Search
JEL: 
E24
E32
J41
J63
J64
Document Type: 
Working Paper

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