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|Abstract:||© 2017, American Economic Association. All rights reserved. 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 nonparticipation. Our parsimonious model is able to capture the key features of the cyclical movements in gross worker flows. Despite the fact that the wage per efficiency unit is constant over time, intertemporal substitution plays an important role in shaping fluctuations in the participation rate.|
|Citation:||Krusell, P, Mukoyama, T, Rogerson, R, Şahin, A. (2017). Gross worker flows over the business cycle. American Economic Review, 107 (11), 3447 - 3476. doi:10.1257/aer.20121662|
|Pages:||3447 - 3476|
|Type of Material:||Journal Article|
|Journal/Proceeding Title:||American Economic Review|
|Version:||Final published version. Article is made available in OAR by the publisher's permission or policy.|
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