In this paper I use the Labour Force Survey to obtain stylised facts about worker gross flows in the United Kingdom. I analyse the size and cyclicality of the flows between employment, unemployment and inactivity. I also examine job-to-job flows, employment separations by reason, flows between...

Recent empirical evidence suggests that a positive technology shock leads to a decline in labour inputs. However, the standard real business model fails to account for this empirical regularity. Can the presence of labour market frictions address this problem, without otherwise altering the...

We extend the standard textbook search and matching model by introducing deep habits in consumption. The cyclical fluctuations of vacancies and unemployment in our model can replicate those observed in the US data, with labour market tightness being 20 times more volatile than consumption....