@techreport{NBERw14697,
 title = "The Demand for Youth: Implications for the Hours Volatility Puzzle",
 author = "Nir Jaimovich and Seth Pruitt and Henry E. Siu",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "14697",
 year = "2009",
 month = "January",
 URL = "http://www.nber.org/papers/w14697",
 abstract = {The employment and hours worked of young individuals fluctuate much more over the business cycle than those of prime-aged individuals. Understanding the mechanism underlying this observation is key to explaining the volatility of aggregate hours over the cycle. We argue that the joint behavior of age-specific hours and wages in the U.S. data point to differences in the cyclical characteristics of labor demand. To articulate this view, we consider a production technology displaying capital-experience complementarity. We estimate the key parameters governing the degree of complementarity and show that the model can account for the behavior of age-specific hours and wages while generating a series of aggregate hours that is nearly as volatile as output.},
}