Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Chicago
Economic Perspectives
A Simple Model of Gross Worker Flows across Labor Market States
Marcelo Veracierto
Abstract

The author develops a simple model of the gross flows of workers across labor market states that is based on Krusell et al. (2012). Its simplicity allows for analytical derivations that make the determination of these flows transparent. Moreover, he finds that if errors in the classification of agents’ labor market states are introduced and allowed to vary over time, the model has the ability to generate business cycle dynamics similar to those observed in the U.S. data. However, its dynamics are driven essentially by exogenous factors, not endogenous ones.


Download Full text
Cite this item
Marcelo Veracierto, "A Simple Model of Gross Worker Flows across Labor Market States" , Federal Reserve Bank of Chicago, Economic Perspectives, issue Q II, pages 38-52, 2015.
More from this series
JEL Classification:
Subject headings:
Keywords: business cycles; labor market; employment
For corrections, contact Bernie Flores ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal