Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19692
Authors: 
Krause, Michael
Lubik, Thomas A.
Year of Publication: 
2007
Series/Report no.: 
Discussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2007,15
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 induce more on-the-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: 
Search and matching
job-to-job mobility
worker flows
Beveridge curve
business cycle
propagation
JEL: 
J64
E32
E24
Document Type: 
Working Paper

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