In this paper, we study nonemployed workers' job search behavior. In particular, we analyze how search behavior changes over the business cycle. Theoretically, we show that job search intensity can either be procyclical or countercyclical depending on various factors. Empirically, we first...

We study a political economy model of entry barriers. Each period the policymaker determines whether to impose a high barrier on entry, and the special interest groups try to influence the policymaker's decision. Entry is accompanied by creative destruction— when many new firms enter, old...