Journal of Labor Economics Vol. 5 No. 2 1987
Work, Rest, and Search: Unemployment, Turnover, and the Cycle
Abstract
This paper presents a model that generates procyclical search, procyclical labor productivity, and countercyclical unemployment broadly consistent with the actual behavior of these time series. Concretely, the model introduces an aggregate shock into the sectoral demand-shift model of the type analyzed by Lucas and Prescott. If aggregate shocks operate multiplicatively and are autocorrelated, the payoff to unemployed search can be procyclical to an extent large enough to offset the productive losses associated with search that also are procyclical.
- DOI
- 10.1086/298141
- Volume
- 5
- Issue
- 2
- Pages
- 131-148
- Language
- en
- Sources
- openalex crossref