Faccini, Renato; Yashiv, Eran - In: Quantitative Economics 13 (2022) 3, pp. 1101-1143
Hiring is a costly activity reflecting firms' investment in their workers. Microdata show that hiring costs involve … optimal allocation of hiring activities. We outline a mechanism based on cyclical markup fluctuations, placing emphasis on … hiring frictions interacting with price frictions. This mechanism generates strong propagation and amplification of all key …