U.S. CPS gross flows data indicate that in recessions firms actually increase their hiring rates from the pools of the … dynamic behavior of the labor share of GDP. The counter-cyclicality of hiring rates and job values, which may appear counter … productivity and the forward-looking concept of job value. The paper explains the high volatility of firm recruiting behavior, as …

Hiring is a costly activity reflecting firms' investment in their workers. Micro-data shows that hiring costs involve … optimal allocation of hiring activities. We outline a mechanism based on cyclical markup fluctuations, placing emphasis on … hiring frictions interacting with price frictions. This mechanism generates strong propagation and amplification of all key …

comovement between matches, unemployment, and vacancies in dynamic labor market models: either by assuming a standard Cobb …

vacancies) divided by the volatility of labor productivity is roughly twice as large as in the United States. We derive and …This paper shows that the German labor market is more volatile than the US labor market. Specifically, the volatility …

This paper analyzes the effects of different labor market institutions on inflation and output volatility. The eurozone … could account for volatility differences across member states, but labor market characteristics have remained very diverse … significant negative effect on output volatility, while replacement rates have a positive effect, both of which are in line with …

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle …

We reassess the role of vacancies in a Diamond-Mortensen-Pissarides style search and matching model. In the absence of … free entry long lived vacancies and endogenous separations give rise to a vacancy depletion channel which we identify via …