Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

Job Creation and Job Destruction in the Theory of Unemployment

Dale T. Mortensen and Christopher A. Pissarides
The Review of Economic Studies
Vol. 61, No. 3 (Jul., 1994), pp. 397-415
Published by: Oxford University Press
Stable URL: http://www.jstor.org/stable/2297896
Page Count: 19
  • Download ($42.00)
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
Job Creation and Job Destruction in the Theory of Unemployment
Preview not available

Abstract

In this paper we model a job-specific shock process in the matching model of unemployment with non-cooperative wage behaviour. We obtain endogenous job creation and job destruction processes and study their properties. We show that an aggregate shock induces negative correlation between job creation and job destruction whereas a dispersion shock induces positive correlation. The job destruction process is shown to have more volatile dynamics than the job creation process. In simulations we show that an aggregate shock process proxies reasonably well the cyclical behaviour of job creation and job destruction in the United States.

Page Thumbnails

  • Thumbnail: Page 
397
    397
  • Thumbnail: Page 
398
    398
  • Thumbnail: Page 
399
    399
  • Thumbnail: Page 
400
    400
  • Thumbnail: Page 
401
    401
  • Thumbnail: Page 
402
    402
  • Thumbnail: Page 
403
    403
  • Thumbnail: Page 
404
    404
  • Thumbnail: Page 
405
    405
  • Thumbnail: Page 
406
    406
  • Thumbnail: Page 
407
    407
  • Thumbnail: Page 
408
    408
  • Thumbnail: Page 
409
    409
  • Thumbnail: Page 
410
    410
  • Thumbnail: Page 
411
    411
  • Thumbnail: Page 
412
    412
  • Thumbnail: Page 
413
    413
  • Thumbnail: Page 
414
    414
  • Thumbnail: Page 
415
    415