I consider three views of the labor market. In the first, wages are flexible and employment follows the principle of … behavior of flows in the labor market strongly favors the third view. In the modern U.S. economy, recessions do not begin with … a burst of layoffs. Unemployment rises because jobs are hard to find, not because an unusual number of people are thrown …

vacancy-unemployment ratio and labor productivity have nearly the same variance. I establish this claim both using analytical …-cycle-frequency fluctuations in unemployment and job vacancies in response to shocks of a plausible magnitude. In the U.S., the vacancy-unemployment … ratio is 20 times as volatile as average labor productivity, while under weak assumptions, search models predict that the …

U.S. labor markets became much less fluid in recent decades. Job reallocation rates fell more than a quarter after 1990 … models that exploit low frequency variation over time within states, using state-level changes in population composition and …, and that sustained high employment is unlikely to return without restoring labor market fluidity …

This paper uses a sample of 116 recession episodes in developed and emerging market economies to compare the labor …-market recovery during financial crises with that of other recession episodes. It documents two new stylized facts. First, labor …-market recovery from financial crises is characterized by either higher unemployment ("jobless recovery") or a lower real wage …

labor market. Technology shocks alone replicate remarkably well the volatility in vacancies, unemployment and finding … and Sweden). We conduct inference with mixed frequency data, combining quarterly series for unemployment, vacancies, GDP …, consumption, and investment, with annual data on unemployment flows. Parameters and shocks are estimated separately for each …

modest increase in unemployment. Despite these forces, we conclude that the problems facing the U.S. labor market are …From the perspective of a wide range of labor market outcomes, the recession that began in 2007 represents the deepest … downturn in the postwar era. Early on, the nature of labor market adjustment displayed a notable resemblance to that observed …

The aggregate neoclassical growth model - with a labor income tax or "labor market distortion" that began growing at … the end of 2007 as its only impulse - produces time series for aggregate labor usage, consumption, investment, and real …, but merely because labor is falling and labor is complementary with capital in the production function. Through the lens …

unemployment. We show that heterogeneity, reflecting differences in match quality and worker assets, reduces the extent of … fluctuations in separations and unemployment. We find that the model faces a trade-off--it cannot produce both realistic dispersion … in wage growth across workers and realistic cyclical fluctuations in unemployment …

Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The … predictions of our simple model are consistent with the contrasting performance of the labor market in Europe and US in terms of … unemployment, productivity growth and wage inequality. To show this, we construct two fictitious economies with calibrated …

. In the context of such a model, we introduce a measure of unemployment and analyze its equilibrium behavior. We show that … a calibrated version of the model is capable of generating both a procyclical labor supply and a countercyclical … unemployment rate, in a way qualitatively consistent with the evidence. The model stresses the role of countercyclical markups in …