TY  - RPRT
        AU  - Kohlbrecher, Britta
AU  - Merkl, Christian
        TI  - Business Cycle Asymmetries and the Labor Market
        PY  - 2016/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9816
        UR  - https://www.iza.org/publications/dp9816
        AB  - 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.
        KW  - unemployment
KW  - job-finding rate
KW  - Beverdige curve
KW  - matching function
KW  - business cycle asymmetries
KW  - effectiveness of policy
        ER  -