10.17889/E109026V1
Krusell, Per
Şahin, Ayşegül
Rogerson, Richard
Mukoyama, Toshihiko
Replication data for: Gross Worker Flows over the Business Cycle
ICPSR Inter-university Consortium for Political and Social Research
2017
10.1257/aer.20121662
10.1257/aer.20121662
1
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.