Unemployment cycles Jan Eeckhout

The American Economic Association has shared the paper “Unemployment Cycles” by Jan Eeckhout (UPF and Barcelona GSE) and Ilse Lindenlaub, which was published in the American Economic Journal: Macroeconomics.

The authors have studied the behaviors of the job market and the economy swings. The theory that Jan Eeckhout and Ilse Lindenlaub propose focuses on employees as one of the main reasons for the unemployed. It holds that employed crowd out the unemployed when on-the-job search picks up during recovery and they found a strategic complementarity between active on-the-job, who search improves the quality of the pool of searchers, and vacancy posting by firms

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