We show that the inability of a standardly-calibrated labor search-and-matching model to account for labor market volatility extends beyond the U.S. to a set of OECD countries. That is, the volatility puzzle is ubiquitous. We argue cross-country data is helpful in scrutinizing between potential...

We show that the inability of a standardly calibrated labor search-and-matching model to account for labor market volatility extends beyond the U.S. to a set of OECD countries. That is, the volatility puzzle is ubiquitous. We argue cross-country data is helpful in scrutinizing between potential...

We propose a mechanism via which a decline in the share of young workers slows employment growth in expanding sectors, and exacerbates sectoral reallocation costs. To quantify this mechanism, we develop a search model with perpetual youth, three sectors and endogenous separations of worker-firm...