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Gross Worker Flows over the Business Cycle

Author

Listed:
  • Per Krusell

    (Institute for International Economic Studies (IIES)
    University of Göteborg
    CEPR
    NBER)

  • Toshihiko Mukoyama

    (University of Virginia)

  • Richard Rogerson

    (Princeton University
    National Bureau of Economic Research (NBER))

  • Aysegul Sahin

    (Federal Reserve Bank of New York)

Abstract

We build a hybrid model of the aggregate labor market that features both standard labor supply forces and frictions in order to study the cyclical properties of gross worker flows across the three labor market states: employment, unemployment, and non-participation. Our goal is to assess the relative importance of frictions and labor supply in accounting for fluctuations in labor market outcomes. Our parsimonious model is able to capture the key features of the cyclical movements in gross worker flows and indicates an important role for both frictions and labor supply.

Suggested Citation

  • Per Krusell & Toshihiko Mukoyama & Richard Rogerson & Aysegul Sahin, 2015. "Gross Worker Flows over the Business Cycle," Discussion Papers 1530, Centre for Macroeconomics (CFM).
    • Handle: RePEc:cfm:wpaper:1530
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    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

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