TY - JOUR
AU1 - Mortensen, Dale, T.
AU2 - Pissarides, Christopher, A.
AB - Abstract In this paper we model a job-specific shock process in the matching model of unemployment with non-cooperative wage behaviour. We obtain endogenous job creation and job destruction processes and study their properties. We show that an aggregate shock induces negative correlation between job creation and job destruction whereas a dispersion shock induces positive correlation. The job destruction process is shown to have more volatile dynamics than the job creation process. In simulations we show that an aggregate shock process proxies reasonably well the cyclical behaviour of job creation and job destruction in the United States. This content is only available as a PDF. © 1994 The Review of Economic Studies Limited
TI - Job Creation and Job Destruction in the Theory of Unemployment
JF - The Review of Economic Studies
DO - 10.2307/2297896
DA - 1994-07-01
UR - https://www.deepdyve.com/lp/oxford-university-press/job-creation-and-job-destruction-in-the-theory-of-unemployment-5dF8NrYjuY
SP - 397
VL - 61
IS - 3
DP - DeepDyve
ER -