In this paper, we investigate whether business cycles can imply sizable effects on average unemployment. First, using a reduced-form model of the labor market, we show that job finding rate fluctuations generate intrinsically a non-linear effect on unemployment: positive shocks reduce...

Overview of the book -- Economic turbulence : what, who, and how much? -- The industries -- Firms, their workers, and their survival -- Firm turbulence and job ladders -- Turbulence and worker career paths -- Economic turbulence and middle-income jobs -- Conclusions and implications for policy

While this is typically ignored, the properties of the stochastic process followed by aggregate consumption affect the estimates of the costs of fluctuations. This paper pursues two approaches to modelling aggregate consumption dynamics and to measuring how much society dislikes fluctuations,...