The rate at which unemployed workers find jobs exhibits a strong negative relationship with the level of unemployment … facts imply a positive correlation between unemployment and vacancy rates over long horizons. This observation contrasts … with the well known negative correlation between unemployment and vacancies at business-cycle frequencies and is consistent …

for only a small portion of the fluctuations in unemployment and vacancies (Shimer (2005a)). In this paper, the author … vintages of entrants are able to account for fluctuations in unemployment and vacancies and that, in this environment, specific …

curve, which draws the classical inverse relation between the job vacancy rate and the unemployment rate, before, during …