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Passive Search and Jobless Recoveries

Author

Listed:
  • Alexey Gorn

Abstract

For employed workers, passive search is as important as active search. Passive search implies costly poaching by firms. I introduce poaching and passive search into a random matching model of the labor market. In the model, some firms switch from poaching to vacancy posting in recessions. Employed workers respond by increasing active search. By doing so, they crowd out unemployed workers both amplifying and propagating the reaction of unemployment to aggregate shocks. This mechanism can explain the counter-cyclicality of relative on-the-job search inferred from aggregate data. I provide cross-state empirical evidence supporting the mechanism

Suggested Citation

  • Alexey Gorn, "undated". "Passive Search and Jobless Recoveries," Working Papers 202113, University of Liverpool, Department of Economics.
    • Handle: RePEc:liv:livedp:202113
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    File URL: https://www.liverpool.ac.uk/media/livacuk/schoolofmanagement/research/economics/WP202113.pdf
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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