Richard Audoly - Website
Labour Economics, Macroeconomics
Abstract - I develop a tractable model of worker reallocation over the business cycle that emphasizes the interplay between firm heterogeneity and on-the-job search. I use this framework to study the role of search frictions in determining aggregate labor productivity following the Great Recession in the UK. In the model, low productivity firms slow down worker reallocation following the start of a recession because workers stay longer at these firms before making a transition to more productive firms. This channel is consistent with evidence from firm-level UK data suggesting that the allocation of workers to firms has downgraded in the aftermath of the Great Recession.
- Professor Fabien Postel-Vinay
- Professor Jan Eeckhout
- Dr Vincent Sterk