New study reveals key insights into fluctuations in unemployment rates.
The article estimates a model of the labor market to understand why there is unemployment even when there are available jobs. The researchers used a search and matching model to analyze how workers find jobs and firms find workers. They found that the model can explain fluctuations in unemployment and job vacancies. By using Bayesian methods, the researchers estimated the model's parameters to better understand how the labor market behaves during economic cycles.