@article{6713e56730ed4cae82a620b9a9dde38a,
title = "Cross-phenomenon restrictions: Unemployment effects of layoff costs and quit turbulence",
abstract = "Cross-phenomenon restrictions associated with returns to labor mobility can inform calibrations of productivity processes in macro-labor models. We exploit how returns to labor mobility influence effects on equilibrium unemployment of changes in (a) layoff costs, and (b) distributions of skill losses coincident with quits (“quit turbulence”). Returns to labor mobility intermediate both effects. Ample labor reallocations observed across market economies that have different layoff costs imply that a turbulence explanation of trans-Atlantic unemployment experiences is robust to adding plausible quit turbulence.",
keywords = "Calibration, Matching model, Skills, Turbulence, Turnover, Unemployment",
author = "Isaac Baley and Lars Ljungqvist and Sargent, {Thomas J.}",
note = "Funding Information: We thank our referee and editor for helpful suggestions. We also thank seminar participants at CREI, Pompeu Fabra, UBC, the 7th Meeting of the European Search and Matching Network, Society of Economic Dynamics 2017, and the 10th NYU Search Theory Workshop for useful comments and suggestions. Research support is gratefully acknowledged by Baley from the Spanish Ministry of the Economy and Competitiveness through the Severo Ochoa Programme for Centres of Excellence in R&D (CEX2019-000915-S) and Project PID2020-116268GB-I00 and by Ljungqvist from the Jan Wallander and Tom Hedelius Foundation (P2017-0254). Funding Information: We thank our referee and editor for helpful suggestions. We also thank seminar participants at CREI, Pompeu Fabra, UBC, the 7th Meeting of the European Search and Matching Network, Society of Economic Dynamics 2017, and the 10th NYU Search Theory Workshop for useful comments and suggestions. Research support is gratefully acknowledged by Baley from the Spanish Ministry of the Economy and Competitiveness through the Severo Ochoa Programme for Centres of Excellence in R&D ( CEX2019-000915-S ) and Project PID2020-116268GB-I00 and by Ljungqvist from the Jan Wallander and Tom Hedelius Foundation ( P2017-0254 ). Publisher Copyright: {\textcopyright} 2023 The Author(s)",
year = "2023",
month = oct,
doi = "10.1016/j.red.2023.07.004",
language = "English (US)",
volume = "50",
pages = "43--60",
journal = "Review of Economic Dynamics",
issn = "1094-2025",
publisher = "Academic Press Inc.",
}