Uncertainty , Productivity and Unemployment in the Great Recession ∗

  title={Uncertainty , Productivity and Unemployment in the Great Recession ∗},
  author={Edouard Schaal},
The 2007-2009 recession has witnessed two phenomena that standard search models of the labor market have difficulty reconciling: a large and persistent increase in unemployment and a sharp rise, above pre-recession levels, in labor productivity following a small initial drop. In addition, these observations were accompanied by a significant increase in the dispersion of firm growth rates. In this paper, I introduce idiosyncratic volatility shocks in search-and-matching models to study if they… CONTINUE READING
Highly Cited
This paper has 48 citations. REVIEW CITATIONS
39 Citations
21 References
Similar Papers


Publications referenced by this paper.
Showing 1-10 of 21 references

Block Recursive Equilibria for Stochastic Models of Search on the Job,

  • Journal of Economic Theory,
  • 2010
Highly Influential
3 Excerpts

Labor-Market Fluctuations and On-the-Job Search,

  • 2007
Highly Influential
1 Excerpt

Procyclical Productivity: Increasing Returns or Cyclical Utilization?

  • S. BASU
  • Quarterly Journal of Economics,
  • 1996
Highly Influential
1 Excerpt

Similar Papers

Loading similar papers…