Job Duration and Match Quality Over the Cycle

42 Pages Posted: 16 Jan 2013 Last revised: 7 Oct 2016

Date Written: September 2016

Abstract

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

Mustre-del-Rio, Jose, Job Duration and Match Quality Over the Cycle (September 2016). Federal Reserve Bank of Kansas City Working Paper No. 12-08, Available at SSRN: https://ssrn.com/abstract=2201161 or http://dx.doi.org/10.2139/ssrn.2201161

Jose Mustre-del-Rio (Contact Author)

Federal Reserve Bank of Kansas City ( email )

1 Memorial Dr.
Kansas City, MO 64198
United States

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