TY  - JOUR
AU  - Rogerson,Richard
AU  - Shimer,Robert
TI  - Search in Macroeconomic Models of the Labor Market
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15901
PY  - 2010
Y2  - April 2010
UR  - http://www.nber.org/papers/w15901
L1  - http://www.nber.org/papers/w15901.pdf
N1  - Author contact info:
Richard Rogerson
Woodrow Wilson School of
Public and International Affairs
323 Bendheim Hall
Princeton University
Princeton, NJ 08544
Tel: 609-258-4839
Fax: 609-258-5349
E-Mail: rdr@princeton.edu

Robert Shimer
Department of Economics
University of Chicago
1126 East 59th Street
Chicago, IL 60637
Tel: 773/702-9015
E-Mail: shimer@uchicago.edu
AB  - This chapter assesses how models with search frictions have shaped our understanding of aggregate labor market outcomes in two contexts: business cycle fluctuations and long-run (trend) changes. We first consolidate data on aggregate labor market outcomes for a large set of OECD countries.  We then ask how models with search improve our understanding of these data. Our results are mixed.  Search models are useful for interpreting the behavior of some additional data series, but search frictions per se do not seem to improve our understanding of movements in total hours at either business cycle frequencies or in the long-run.  Still, models with search seem promising as a framework for understanding how different wage setting processes affect aggregate labor market outcomes.
ER  -