Boom in Job Search Amplifies Economic Shocks, Unemployment Fluctuations
The article shows how workers searching for new jobs while still employed can affect the job market during economic booms. When workers search for new jobs, companies are more likely to post job openings, leading to more job searches. This cycle helps keep job creation costs low for companies and can amplify economic shocks. The model used in the study closely matches real-world data on fluctuations in unemployment, job openings, and labor productivity, with output being highly correlated over time.