NBER Publications by Marcus Hagedorn

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Working Papers and Chapters

October 2013Unemployment Benefits and Unemployment in the Great Recession: The Role of Macro Effects
with Fatih Karahan, Iourii Manovskii, Kurt Mitman: w19499
We exploit a policy discontinuity at U.S. state borders to identify the effects of unemployment insurance policies on unemployment. Our estimates imply that most of the persistent increase in unemployment during the Great Recession can be accounted for by the unprecedented extensions of unemployment benefit eligibility. In contrast to the existing recent literature that mainly focused on estimating the effects of benefit duration on job search and acceptance strategies of the unemployed -- the micro effect -- we focus on measuring the general equilibrium macro effect that operates primarily through the response of job creation to unemployment benefit extensions. We find that it is the latter effect that is very important quantitatively.
December 2012Identifying Equilibrium Models of Labor Market Sorting
with Tzuo Hann Law, Iourii Manovskii: w18661
Does the market allocate the right workers to the right jobs? Since observable (to economists) variables account for only a small fraction of the wage variance in the data, to answer this question it is essential to study assortative matching between employers and employees based on their unobserved characteristics. This paper enables this line of research. We show theoretically that all parameters of the classic model of sorting based on absolute advantage in Becker (1973) with search frictions can be identified using only matched employer-employee data on wages and labor market transitions. In particular, these data are sufficient to assess whether matching between workers and firms is assortative, whether sorting is positive or negative, and to measure the potential effect on output fro...
August 2011Comment on "The Cyclical Behavior of Equilibrium Unemployment and Vacancies in the U.S. and Europe"
in NBER International Seminar on Macroeconomics 2011, Jeffrey Frankel and Christopher Pissarides, organizers

Contact and additional information for this authorAll publicationsWorking Papers only


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