Nuremberg Research Seminar in Economics on 05 February 2020

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You are invited to join the weekly Nuremberg Research Seminar in Economics on 05 February 2020, from 13.15 to 14.45 pm. The seminar will be held in room Number LG 0.423. Carlos Carrillo Tudela (University of Essex) will be talking about “Equilibrium Job Turnover and the Business Cycle”.

Please find below the abstract:

In this paper we propose a novel equilibrium framework in which to jointly investigate worker and job flows over the business cycle. We use this framework to investigate the role of job creation and job destruction in driving the cyclical behaviour of unemployment, employer-to-employer transitions and hiring. Our framework is rich allowing for the study of firm dynamics patterns across age, size and wage dimensions. It is also flexible enough that can be estimated using simulation methods of moments. We show that our model is able to replicate many salient features of worker, job and firm patterns for the US economy. The results highlight the importance of job destruction (relative to job creation) as the main force behind unemployment and the cyclicality of quits and hires. This is done by showing the important role replacement hires play in these dynamics.