We exploit the 1996 reform of the German child benefit program to identify the causal effect of child benefits on fertility. Generally, the reform increased child benefits. However, the exact amount of the increase varied by household income and sibship size. We use this heterogeneity of the...

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...

This paper shows that a search and matching model with idiosyncratic training cost shocks can explain the asymmetric movement of the job-finding rate over the business cycle and the decline of matching efficiency in recessions. Large negative aggregate shocks move the hiring cutoff into a part...