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999			_c520995 _d520995
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100			_aWalentin, Karl and Westermark, Andreas _935762
245			_aLearning on the job and the cost of business cycles
260			_aAmerican Economic Journal: Macroeconomics
300			_a14(4), Oct, 2022: p.341-377
520			_aWe show that business cycles reduce welfare through a decrease in the average level of employment in a labor market search model with learning on the job and skill loss during unemployment. Empirically, unemployment and the job-finding rate are negatively correlated. Since new jobs are the product of these two from the employment transition equation, business cycles imply fewer new jobs. Learning on the job implies that the resulting decrease in employment reduces aggregate human capital. This reduces incentives to post vacancies, further decreasing employment and human capital. We quantify this mechanism and find large output and welfare costs of business cycles. – Reproduced
773			_aAmerican Economic Journal: Macroeconomics
906			_aEMPLOYMENT
942			_cAR