Purpose: The purpose of this paper is to focus on the role of unions for job flow rates. Design/methodology/approach: The author uses a longitudinal data set emphasizing the importance of the time dimension. Findings: Using the fixed effects estimator, the author finds that unions decrease the...

This paper shows that government debt creates a so far neglected wealth effect that has sizable effects on business cycle fluctuations. We present a new channel through which governments can influence cyclical fluctuations generated by any type of shock and contribute to macroeconomic stability....