%0 Report
        %A Kohlbrecher, Britta
%A Merkl, Christian
        %T Business Cycle Asymmetries and the Labor Market
        %D 2016
        %8 2016 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 9816
        %U https://www.iza.org/publications/dp9816
        %X This paper shows that the matching function and the Beveridge curve in the United States exhibit strong nonlinearities over the business cycle. These patterns can be replicated by enhancing a search and matching model with idiosyncratic productivity shocks for new contacts. Large negative aggregate shocks move the hiring cutoff point into a part of the idiosyncratic density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our proposed mechanism is of high relevance as it leads to time varying effects of certain policy interventions.
        %K unemployment
%K job-finding rate
%K Beverdige curve
%K matching function
%K business cycle asymmetries
%K effectiveness of policy