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Worker-firm screening and the business cycle

Jake Bradley

Review of Economic Dynamics2025https://doi.org/10.1016/j.red.2025.101272article
AJG 3ABDC A*
Weight
0.50

Abstract

To understand the co-movement of vacancies and employment, an equilibrium model with two-sided screening is developed. On one side of the market, both employed and unemployed workers can evaluate multiple job openings simultaneously and decide which ones to apply for. On the other side, firms assess multiple applicants and choose their preferred candidates. This model is calibrated to reflect the U.S. economy. Consistent with data, the model generates significant volatility in vacancies, unemployment, and labor market flows over the business cycle. Moreover, differences in the search behaviors of employed and unemployed workers offer a theoretical explanation for the shift in the Beveridge curve observed after the 2008 recession.

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https://doi.org/https://doi.org/10.1016/j.red.2025.101272

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@article{jake2025,
  title        = {{Worker-firm screening and the business cycle}},
  author       = {Jake Bradley},
  journal      = {Review of Economic Dynamics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1016/j.red.2025.101272},
}

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Worker-firm screening and the business cycle

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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