In the standard macroeconomic search and matching model of the labor market, there is a tight link between the quantitative effects of (i) aggregate productivity shocks on unemployment and (ii) unemployment benefits on unemployment. This tight link is at odds with the empirical literature. We...

This paper analyzes the effects of different wage cyclicalities on labor market flow dynamics at the establishment level. We derive a model that allows for heterogeneous wage cyclicalities across firms over the business cycle and confront the theoretical results with the new AWFP dataset, which...

We study the relationship between cyclical job and worker flows at the establishment level using the new German AWFP dataset spanning from 1975-2014. We find that worker turnover moves more procyclical than job turnover. This procyclical worker churn takes place along the entire employment...

In this paper, we analyze the connection between value added, wages, and labor market ows at the establishment level. For this purpose, we first develop a simple model to illustrate the expected comovement of these variables. For the empirical analysis, we link the new German Administrative Wage...

This paper analyzes Germany's unusual labor market experience during the Great Recession. We estimate a general equilibrium model with a detailed labor market block for post-unification Germany. This allows us to disentangle the role of institutions (short-time work, government spending rules)...

Using the IAB Job Vacancy Survey for Germany, we look into the black box of recruiting intensity and hiring practices. Our paper shows three important channels for hiring, namely vacancy posting, the selectivity of hiring (labor selection), and the number of search channels. While vacancy...

This paper shows that less generous unemployment benefits in one country may generate substantial negative long-run consumption spillovers to non-reforming countries under incomplete consumption insurance. While lower benefits reduce unemployment in the reforming country, employed workers...

This paper is the first to analyze how much the probability of selecting a worker from a pool of applicants fluctuates over the business cycle. We use the German Job Vacancy Survey to construct the selection rate on the regional, industry, and national level and show that it is negatively...

This paper shows that the matching function and the Beveridge curve in the United States exhibit strong nonlinearities over the business cycle. These patterns can be replicated by enhancing a search and matching model with idiosyncratic productivity shocks for new contacts. Large negative...

There is strong empirical evidence for Cobb-Douglas matching functions. We show in this paper that this widely found relation between matches on the one hand and unemployment and vacancies on the other hand can be the result of different underlying mechanisms. Obviously, it can be generated by...