Gross Worker Flows over the Business Cycle

Krusell, Per; Mukoyama, Toshihiko; Rogerson, Richard; Şahin, Ayşegül

doi:10.1257/aer.20121662

Cited by 98 publications

(125 citation statements)

References 32 publications

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“…The EN flow is an exception. While Krusell et al (2016) show that it is procyclical overall, its cyclicality is weaker in the graph and its procyclicality is limited to prime-ages. Second, overall the flows that involve the N state vary less over the cycle compared to the flows between E and U.…”

Section: Business Cycles -The Great Recessionmentioning

confidence: 88%

“…Our model extends Krusell et al (2016) to a life-cycle setting. The model features consumers who optimize in consumption-saving decisions, labor-market participation decisions, and face labor-market frictions.…”

Section: A22 Growth Rates Of Average Quality Levelsmentioning

confidence: 99%

“…The model features consumers who optimize in consumption-saving decisions, labor-market participation decisions, and face labor-market frictions. The model is a parsimonious partial equilibrium model; however, Krusell et al (2016) have shown that the infinite-horizon version of the model fits the average and business-cycle patterns of the labor market flows very well. We quantitatively evaluate whether the model's success translates into the life-cycle context.…”

Section: A22 Growth Rates Of Average Quality Levelsmentioning

confidence: 99%

“…Similarly to Krusell et al (2016), we consider two aggregate states: a good state and a bad state. These states differ with respect to labor market frictions, which can be considered as a stand-in for labor demand fluctuations.…”

Section: Business Cycle Implications Of the Modelmentioning

confidence: 99%

“…λ is constant across labor market states and parameterized to be .065, which corresponds to a 23 percent shock to the job offer probability of an unemployed worker at age 42. The 23 percent shock value is taken from Krusell et al (2016). In the good state we increase job offer probabilities by .065 from the calibrated value and in the bad state we decrease job offer probabilities by .065.…”

Section: Business Cycle Implications Of the Modelmentioning

confidence: 99%

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Essays in Macroeconomics

Guner

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This dissertation consists of two chapters. The first chapter, titled 'Growth and Welfare Implications of Sector-Specific Innovations,' identifies the optimal government support of business research and development (R&D) activities when sectors are heterogeneous. To this end, I build an endogenous growth model in which firm R&D drives macroeconomic growth and firm dynamics in two sectors that have different characteristics: a consumption-goods sector and an investment-goods sector. I calibrate my model to U.S. data. To quantitatively characterize the optimal R&D subsidy rate for each sector, I simulate the economy with various R&D subsidy rates that range from 0 to 90 percent. By explicitly examining the transition path after a change in subsidy rates, I highlight the tradeoff between the consumption level in short-run and long-run growth. I find that the optimal combination of the subsidy rates is 82 percent in the consumption sector and 78 percent in the investment sector.By moving from the baseline subsidy rates (20 percent in each sector), society can achieve a 15 percent welfare gain in consumption-equivalent terms. The investment sector R&D subsidy generates three quarters of this welfare gain. The socially optimal subsidy system increases the annual GDP growth rate from 2 percent to 3.3 percent.I also find that when the government transfer budget is limited, the consumption sector R&D should be subsidized at a higher rate than the investment sector.

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Section: Business Cycles -The Great Recessionmentioning

confidence: 88%

Section: A22 Growth Rates Of Average Quality Levelsmentioning

confidence: 99%

Section: A22 Growth Rates Of Average Quality Levelsmentioning

confidence: 99%

Section: Business Cycle Implications Of the Modelmentioning

confidence: 99%

Section: Business Cycle Implications Of the Modelmentioning

confidence: 99%

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Essays in Macroeconomics

Guner

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Unemployment insurance programs and the choice to leave the labor force

Conway

2022

Southern Economic Journal

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I extend a labor-market search and matching model of equilibrium with unemployment insurance (UI) program to incorporate the choice to participate in the labor market. UI reform that lowers the UI payment increases search intensity but discourages labor-market participation. Reducing UI payments has the moralhazard effects derived in the literature but also a nonparticipation effect. UI reform in North Carolina in mid-2013 provides an empirical test of the model using data from the Current Population Survey. The reduction in size and duration of UI payments led to no significant increase in employment but a significant increase in those exiting the labor force.

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Endogenous Firm Dynamics and Labor Flows via Heterogeneous Agents ✶ ✶Support from the John D. and Catherine T. MacArthur Foundation, the National Science Foundation (0738606), the Small Business Administration (SBAHQ-05-Q-0018), and the Mercatus Center at George Mason is gratefully acknowledged. I have no relevant or material financial interests that relate to the research described in this paper or the associated model. Earlier versions of this work were presented at research institutions (Aix-en-Provence

Axtell

2018

Handbook of Computational Economics

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Gross Worker Flows over the Business Cycle

Cited by 98 publications

References 32 publications

Essays in Macroeconomics

Essays in Macroeconomics

Unemployment insurance programs and the choice to leave the labor force

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