Search frictions: Matching aggregate and establishment observations

Russell Cooper; John Haltiwanger; Jonathan L. Willis

doi:10.1016/j.jmoneco.2007.06.002

Search frictions: Matching aggregate and establishment observations

Russell Cooper, John Haltiwanger, Jonathan L. Willis

Economics

Research output: Contribution to journal › Article › peer-review

55 Scopus citations

Abstract

We estimate a search model to match hours, employment, vacancies and unemployment at the micro- and macrolevels. We establish a set of facts concerning the variability of unemployment and vacancies in the aggregate and the distribution of net employment growth and the comovement of hours and employment growth at the establishment level. A search model with non-convex costs of posting vacancies, establishment-level profitability shocks and a contracting framework to set hours provides a structure to understand these observations. The estimated model is able to capture both the aggregate and establishment-level facts.

Original language	English (US)
Pages (from-to)	56-78
Number of pages	23
Journal	Journal of Monetary Economics
Volume	54
Issue number	SUPPL.
DOIs	https://doi.org/10.1016/j.jmoneco.2007.06.002
State	Published - Sep 1 2007

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.jmoneco.2007.06.002

Cite this

@article{8c726d08d66f466fb752c5c26fd2eb37,

title = "Search frictions: Matching aggregate and establishment observations",

abstract = "We estimate a search model to match hours, employment, vacancies and unemployment at the micro- and macrolevels. We establish a set of facts concerning the variability of unemployment and vacancies in the aggregate and the distribution of net employment growth and the comovement of hours and employment growth at the establishment level. A search model with non-convex costs of posting vacancies, establishment-level profitability shocks and a contracting framework to set hours provides a structure to understand these observations. The estimated model is able to capture both the aggregate and establishment-level facts.",

author = "Russell Cooper and John Haltiwanger and Willis, {Jonathan L.}",

note = "Funding Information: We are grateful to an anonymous referee, Robert King, Shigeru Fujita, Murat Tasci and Eran Yashiv for helpful comments. Thanks also to Stephen Nickell, Julian Messina, participants at the 2006 Swiss National Bank/JME Conference and seminar participants at the Ohio State University, Washington University of St. Louis and the Federal Reserve Banks of Chicago, Dallas, Kansas City and New York for comments and suggestions. The authors thank the NSF for financial support. The views expressed herein are solely those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of Kansas City or the Federal Reserve System. ",

year = "2007",

month = sep,

day = "1",

doi = "10.1016/j.jmoneco.2007.06.002",

language = "English (US)",

volume = "54",

pages = "56--78",

journal = "Journal of Monetary Economics",

issn = "0304-3932",

publisher = "Elsevier B.V.",

number = "SUPPL.",

}

TY - JOUR

T1 - Search frictions

T2 - Matching aggregate and establishment observations

AU - Cooper, Russell

AU - Haltiwanger, John

AU - Willis, Jonathan L.

N1 - Funding Information: We are grateful to an anonymous referee, Robert King, Shigeru Fujita, Murat Tasci and Eran Yashiv for helpful comments. Thanks also to Stephen Nickell, Julian Messina, participants at the 2006 Swiss National Bank/JME Conference and seminar participants at the Ohio State University, Washington University of St. Louis and the Federal Reserve Banks of Chicago, Dallas, Kansas City and New York for comments and suggestions. The authors thank the NSF for financial support. The views expressed herein are solely those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of Kansas City or the Federal Reserve System.

PY - 2007/9/1

Y1 - 2007/9/1

N2 - We estimate a search model to match hours, employment, vacancies and unemployment at the micro- and macrolevels. We establish a set of facts concerning the variability of unemployment and vacancies in the aggregate and the distribution of net employment growth and the comovement of hours and employment growth at the establishment level. A search model with non-convex costs of posting vacancies, establishment-level profitability shocks and a contracting framework to set hours provides a structure to understand these observations. The estimated model is able to capture both the aggregate and establishment-level facts.

AB - We estimate a search model to match hours, employment, vacancies and unemployment at the micro- and macrolevels. We establish a set of facts concerning the variability of unemployment and vacancies in the aggregate and the distribution of net employment growth and the comovement of hours and employment growth at the establishment level. A search model with non-convex costs of posting vacancies, establishment-level profitability shocks and a contracting framework to set hours provides a structure to understand these observations. The estimated model is able to capture both the aggregate and establishment-level facts.

UR - http://www.scopus.com/inward/record.url?scp=34547769250&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=34547769250&partnerID=8YFLogxK

U2 - 10.1016/j.jmoneco.2007.06.002

DO - 10.1016/j.jmoneco.2007.06.002

M3 - Article

AN - SCOPUS:34547769250

SN - 0304-3932

VL - 54

SP - 56

EP - 78

JO - Journal of Monetary Economics

JF - Journal of Monetary Economics

IS - SUPPL.

ER -

Search frictions: Matching aggregate and establishment observations

Abstract

All Science Journal Classification (ASJC) codes

UN SDGs

Access to Document

Other files and links

Fingerprint

Cite this