firm's profitability from its employment decisions. I show that the resulting signaling model has pooling equilibria in … which, for small negative shocks, the firm bears the costs of some labor hoarding in order to conceal negative information …

search and matching frictions in the labour market to these empirical responses. As in the data, an increase in commodity …) approach of modelling search and matching frictions and the alternating offer bargaining model suggested by Hall (2008) …