We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Unemployment and Endogenous Reallocation Over the Business Cycle.
- Authors
Carrillo‐Tudela, Carlos; Visschers, Ludo
- Abstract
This paper studies the extent to which the cyclicality of occupational mobility shapes that of aggregate unemployment and its duration distribution. We document the relation between workers' occupational mobility and unemployment duration over the long run and business cycle. To interpret this evidence, we develop a multisector business cycle model with heterogenous agents. The model is quantitatively consistent with several important features of the US labor market: procyclical gross and countercyclical net occupational mobility, the large volatility of unemployment and the cyclical properties of the unemployment duration distribution, among many others. Our analysis shows that occupational mobility due to workers' changing career prospects, and not occupation‐wide differences, interacts with aggregate conditions to drive the fluctuations of the unemployment duration distribution, and the aggregate unemployment rate.
- Subjects
BUSINESS cycles; OCCUPATIONAL mobility; UNEMPLOYED people; UNEMPLOYMENT; CAREER changes; UNEMPLOYMENT statistics; UNEMPLOYMENT insurance
- Publication
Econometrica, 2023, Vol 91, Issue 3, p1119
- ISSN
0012-9682
- Publication type
Article
- DOI
10.3982/ECTA12498