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Replication data for: Unemployment Cycles

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  • Eeckhout, Jan
  • Lindenlaub, Ilse
Publication Date
  • Abstract

    The labor market by itself can create cyclical outcomes, even in the absence of exogenous shocks. We propose a theory in which the search behavior of the employed has profound aggregate implications for the unemployed. There is a strategic complementarity between active on-the-job search and vacancy posting by firms, which leads to multiple equilibria: in the presence of sorting, active on-the-job search improves the quality of the pool of searchers. This encourages vacancy posting, which in turn makes costly on-the-job search more attractive—a self-fulfilling equilibrium. The model provides a rationale for the Jobless Recovery, the outward shift of the Beveridge curve during the boom and for pro-cyclical frictional wage dispersion. Central to the model's mechanism is the fact that the employed crowd out the unemployed when on-the-job search picks up during recovery. We also illustrate this mechanism in a stylized calibration exercise.
  • Is supplement to
    DOI: 10.1257/mac.20180105 (Text)
  • Eeckhout, Jan, and Ilse Lindenlaub. “Unemployment Cycles.” American Economic Journal: Macroeconomics 11, no. 4 (October 1, 2019): 175–234.
    • ID: 10.1257/mac.20180105 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07

Eeckhout, Jan; Lindenlaub, Ilse (2019): Replication data for: Unemployment Cycles. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.