Business cycle asymmetries and the labor market

Kohlbrecher B, Merkl C (2022)

Publication Language: English

Publication Type: Journal article

Publication year: 2022


Book Volume: 73

Article Number: 103458


DOI: 10.1016/j.jmacro.2022.103458

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This paper shows that a search and matching model with idiosyncratic training cost shocks can explain the asymmetric movement of the job-finding rate over the business cycle and the decline of matching efficiency in recessions. Large negative aggregate shocks move the hiring cutoff into a part of the training cost distribution with higher density. The position of the hiring cutoff in the distribution is disciplined by the empirical elasticity of the job-finding rate with respect to market tightness. Our model explains a large fraction of the matching efficiency decline during the Great Recession and generates state-dependent effects of policy interventions.

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How to cite


Kohlbrecher, B., & Merkl, C. (2022). Business cycle asymmetries and the labor market. Journal of Macroeconomics, 73.


Kohlbrecher, Britta, and Christian Merkl. "Business cycle asymmetries and the labor market." Journal of Macroeconomics 73 (2022).

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