Heterogeneity and Cyclical Unemployment
---- Acknowledgements -----
We thank Evgenia Dechter for her excellent research assistance; we than Mark Aguiar, Ricardo Lagos, Iourii Manovskii, Richard Rogerson, and Randy Wright for helpful suggestions. Kim acknowledges financial support from the Korea Research Foundation Grant (MOEHRD) KRF-2007-332-B0060. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.