Date: 2013
Type: Article
The ins and outs of unemployment : an analysis conditional on technology shocks
The economic journal, 2013, Vol. 123, No. 569, pp. 515-539
CANOVA, Fabio, LOPEZ-SALIDO, David, MICHELACCI, Claudio, The ins and outs of unemployment : an analysis conditional on technology shocks, The economic journal, 2013, Vol. 123, No. 569, pp. 515-539
- https://hdl.handle.net/1814/34310
Retrieved from Cadmus, EUI Research Repository
We analyse how unemployment, job-finding and job-separation rates react to neutral and investment-specific technology shocks. Neutral shocks increase unemployment and explain a substantial portion of it volatility; investment-specific shocks expand employment and hours worked and contribute to hours worked volatility. Movements in the job-separation rates are responsible for the impact response of unemployment while job-finding rates for movements along its adjustment path. The evidence warns against using models with exogenous separation rates and challenges the conventional way of modelling technology shocks in search and sticky price models.
Additional information:
Article first published online on October 10, 2012
Cadmus permanent link: https://hdl.handle.net/1814/34310
Full-text via DOI: 10.1111/j.1468-0297.2012.02548.x
ISSN: 1468-0297
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