000			01281nam a22001457a 4500
999			_c525523 _d525523
008			240319b ||||| |||| 00| 0 eng d
100			_aMercan, Yusuf, Schoefer, Benjamin and Sedláček, Petr _950304
245			_aA congestion theory of unemployment fluctuations
260			_aAmerican Economic Journal: Macroeconomics
300			_a16(1), Jan, 2024: p.238-285
520			_aWe propose a theory of unemployment fluctuations in which new hires and incumbent workers are imperfect substitutes. Hence, attempts to hire away the unemployed during recessions diminish the marginal product of new hires, discouraging job creation. This single feature achieves a tenfold increase in the volatility of hiring in an otherwise standard search model, produces a realistic Beveridge curve despite countercyclical separations, and explains 30–40 percent of US unemployment fluctuations. Additionally, it explains the excess procyclicality of new hires' wages, the cyclical labor wedge, countercyclical earnings losses from job displacement, and the limited steady-state effects of unemployment insurance. – Reproduced https://www.aeaweb.org/articles?id=10.1257/mac.20210171
773			_aAmerican Economic Journal: Macroeconomics
906			_aEMPLOYMENT
942			_cAR