search query: @indexterm BUSINESS CYCLES / total: 529
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| Author: | Schettkat, R. |
| Title: | Labor market flows over the business cycle: an asymmetric hiring cost explanation |
| Journal: | Journal of Institutional and Theoretical Economics
1996 : DEC, VOL. 152:4, p. 641-653 |
| Index terms: | ECONOMICS BUSINESS CYCLES THEORIES |
| Language: | eng |
| Abstract: | In recessions, both the flow from employment to unemployment as well as the reverse flow from unemployment to employment increase, which is in strong contrast to the conventional view of the business cycle. This paper argues that these asymmetries in flows are to be explained by a shift away from hiring of employed workers to hiring of unemployed workers driven by an asymmetrical development of hiring costs. This explanation competes with real business cycle explanations. Flow analysis shows that it is mainly the substitution of hiring from employment through hiring from unemployment which accounts for the observed asymmetries. |
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