the business cycle features of job flows, worker flows between employment and unemployment, and job-to-job transitions …. The calibrated model successfully replicates (i) countercyclical worker flows between employment and unemployment, (ii …. The cyclical properties of worker flows between employment and unemployment differ from those of job flows, partly because …

job flows simultaneously. In particular, the model correctly predicts that hires from unemployment move countercyclically … through unemployment but is part of job creation, for which procyclicality of the job finding rate dominates its cyclicality …. We also show that the model generates large volatilities of unemployment and vacancies when a worker's outside option is …

worker moral hazard only makes the "unemployment volatility puzzle" worse. However, moral hazard has potential to explain …

, directly from employer to employer as well as indirectly via an unemployment spell. In addition they are more likely to change …