This paper studies the role of employer behavior in generating “negative duration dependence†– the adverse effect of a longer unemployment spell – by sending fictitious resumes to real job postings in 100 U.S. cities. Our results indicate that the likelihood of receiving...

How does time off from work affect an individual’s job prospects? A study by CLSRN affiliates Kory Kroft (University of Toronto), Fabian Lange (McGill University) and Matthew J. Notowidigdo (University of Chicago) entitled “Duration Dependence and Labor Market Conditions: Theory and...

The issue of imperfect competition in economic theory has been repeatedly discussed given its importance in the distribution of economic resources. In this study, market power measured by price over marginal cost markup has been assessed using the data of census of manufacturing industries (CMI)...

This paper analyzes optimal unemployment insurance (UI) over the business cycle. We consider a general matching model of the labor market. For a given UI, the economy is efficient if tightness satisfies a generalized Hosios condition, slack if tightness is too low, and tight if tightness is too...

The equity premium in the UK appears to have risen significantly since the start of the financial crisis and the associated extended recession. This paper examines the relationship between the business cycle and equity market returns to see how robust this association is. Several classifications...

This article is devoted to the cyclical properties of the labor market search model with exogenous job destruction. Its internal propagation mechanism of shocks has been criticized for requiring too strong labor market constraints. Here, its predictions are compared according to the employment...

As economic expansions raise employment and wages, associated shifts in income and time constraints would be expected to also impact individuals’ health. This study utilizes information from the US Behavioral Risk Factor Surveillance System (1990–2009) to explore the relationship between the...

The VIX, the stock market option-based implied volatility, strongly co-moves with measures of the monetary policy stance. When decomposing the VIX into two components, a proxy for risk aversion and expected stock market volatility (“uncertainty”), we find that a lax monetary policy decreases...

By considering entrepreneurs who hire employees – employers – and entrepreneurs without personnel – own-account workers – as related but distinct groups within entrepreneurship, this work analyzes the roles of different factors in entrepreneurship survival in Europe from a new...