This paper provides new interpretations of the effects of rising economic turbulence—an increase in the rate of skill depreciation upon job loss—and its interaction with labor market institutions. We have three main results, based on a life‐cycle model with labor market frictions and labor...

This paper provides a unified account of the trends in unemployment and labor force participation pertaining to the employment experience of older male workers during the past half-century. We build an equilibrium life-cycle model with labor-market frictions and an operative labor supply margin,...

We extend Nakamura et al. (2019, 2020)'s approach of using the publicly available microdata files of the Labour Force Survey (LFS) to construct worker transition rates across employment, unemployment, and inactivity. Our approach involves estimating and applying a scaling factor that has been...

The COVID-19 pandemic has led to an explosion of research using private-sector datasets to measure business dynamics and employment in real-time. Yet questions remain about the representativeness of these datasets and how to distinguish business openings and closings from sample churn – i.e.,...

Although the size of the labor force is nearly acyclical, worker flows between employment and unemployment on the one hand and inactivity on the other hand fluctuate significantly over the business cycle. After reviewing these facts, this paper lays out a job-search model to uncover the...

This paper provides new interpretations of the effects of rising economic turbulence – an increase in the rate of skill depreciation upon job loss – and its interaction with labor market institutions. We have three main results, based on a life-cycle model with labor market frictions and...

Employed individuals in the U.S. are increasingly more likely to move to involuntarily part-time work than to unemployment. Spells of involuntary part-time work are different from unemployment spells: a full-time worker who takes on a part-time job suffers an earnings loss while remaining...

We document that fluctuations in part-time employment play a major role in movements in hours per worker during cyclical swings in the labor market. Building on this result, we develop a stock-flow framework to describe the dynamics of part-time employment. The evolution of part-time employment...

We use a set of empirical and analytical tools to conduct parallel analyses of involuntary part-time work and unemployment in the U.S. labor market. In the empirical analysis, we document that the similar cyclical behavior of involuntary part-time work and unemployment masks major differences in...