This discussion paper resulted in a publication in the <A HREF="https://apps.webofknowledge.com/full_record.do?product=UA&search_mode=GeneralSearch&qid=5&SID=T2lPmvB33HytcbnHQmV&page=1&doc=4">'Oxford Economic Papers-New Series'</A>, 2013, 65(2), 219-239.<P> This paper first documents the increase in the time lag with which labor input reacts to output fluctuations ("the labor adjustment lag") that is visible in US data since the...</p></a>

We combine micro and macro unemployment duration data to study the effects of the business cycle on the outflow from unemployment. We allow the cycle to affect individual exit probabilities of unemployed workers as well as the composition of the total inflow into unemployment. We estimate the...

Randomized experiments provide policy relevant treatment effects if there areno spillovers between participants and nonparticipants. We show that thisassumption is violated for a Danish activation program for unemployed workers.Using a difference-in-difference model we show that the...

As both the natural level of output and the New Keynesian output gap cannot be observed in practice, there is quite some debate on the question how these variables look like in practice. Rather than taking the standard approach of using a time trend or the HP-filter to obtain estimates of these...

Recent research has shown that the standard labor matching model hasdifficulties in reproducing the co-movement patterns observed in US data. Thisis due to the fact that the standard model lacks sufficient propagation of shocks.This paper shows that refining the informational structure of the...