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Good vs. bad jobs over the business cycle

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  • Dennis Wesselbaum

    (University of Otago)

Abstract

This paper estimates a search and matching model of the U.S. labor market with on-the-job search. Using Bayesian methods we find that the model generates different dynamics compared to the standard search and matching model. Furthermore, our parameter estimates vary sizably across good and bad jobs. Job-specific shocks have different effects and create interesting spillover effects. We find that shocks to good jobs matter more than shocks to bad jobs.

Suggested Citation

  • Dennis Wesselbaum, 2025. "Good vs. bad jobs over the business cycle," Economics Bulletin, AccessEcon, vol. 45(1), pages 150-165.
    • Handle: RePEc:ebl:ecbull:eb-23-00169
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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