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...

This paper reviews recent approaches to modelling the labour market, and assesses their implications for inflation dynamics through both their effect on marginal cost and on price-setting behaviour. In a search and matching environment, we consider the following modelling set-ups:...

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....