Labor market frictions are able to induce sluggish aggregate employment dynamics. However, these frictions have strong implications for thesourceof this propagation: they distort the path of aggregate employment by impeding the flow of labor across firms. For a canonical class of frictions, we...

"One of the strongest trends in recent macroeconomic modeling of labor market fluctuations is to treat unemployment inflows as acyclical. This trend stems in large part from an influential paper by Shimer on "Reassessing the Ins and Outs of Unemployment," i.e., the extent to which increased...

The negative relationship between the unemployment rate and the job openings rate, known as the Beveridge curve, has been relatively stable in the U.S. over the last decade. Since the summer of 2009, however, the U.S. unemployment rate has hovered between 9.4 and 10.1 percent in spite of firms...