"Data from the NLSY show that more than a quarter of all younger men experience some period of self-employment. Many of them return to wage work. This paper analyzes a simple model of job search and self-employment where self-employment provides an alternative source of income for unemployed...

In judging the degree of slack in the economy, policymakers must determine the origin of any increase in the unemployment rate—specifically, how much of it is due to a cyclical slowdown (driven by the broader economy) as opposed to a structural realignment in production (driven by a shift in...

Increased economic turbulence leads to increases in the full employment level of unemployment. This article proposes a measure of economic turbulence using data on employment shares across broad industry categories. The effect of the business cycle on employment shares has been removed to allow...

Spells of self-employment for younger men are typically of short duration with slightly more than half lasting two years or less. This article examines factors that lead to longer durations, focusing on the role of cyclical factors in distinguishing entrepreneurs from discouraged wage workers.

Employment growth is highly correlated across regions. The author uses joint movements in regional employment growth to define and estimate a common factor, analogues to the business cycle. Regions differ substantially in the relative importance of cyclical shocks and idiosyncratic shocks in...