Elsby, Michael W. L.; Michaels, Ryan; Ratner, David - In: Quantitative Economics 10 (2019) 3, pp. 803-852
Labor market frictions are able to induce sluggish aggregate employment dynamics. However, these frictions have strong implications for thesourceof this propagation: they distort the path of aggregate employment by impeding the flow of labor across firms. For a canonical class of frictions, we...