Job Duration and Match Quality Over the Cycle
42 Pages Posted: 16 Jan 2013 Last revised: 7 Oct 2016
Date Written: September 2016
This paper examines how job quality varies over the cycle. Empirical evidence from the National Longitudinal Survey of Youth (NLSY) suggests match quality is procyclical. This interpretation is corroborated in a calibrated model with on-the-job search. In the model, more high quality matches are observed in expansions because of improved reallocation through on-the-job search. This eﬀect, however, is dominated by lower job destruction in expansions, which preserves matches at the bottom of the quality distribution.
Keywords: Business cycles, search and matching, directed search on-the-job search, match quality, job duration
JEL Classification: E24, E32, J21, J22, J62, J63, J64
Suggested Citation: Suggested Citation