The Cyclicality of the Opportunity Cost of Employment
---- Acknowledgements -----
We are especially grateful to Bob Hall for many insightful discussions and for his generous comments at various stages of this project. This paper also benefited from comments and conversations with Mark Bils, Steve Davis, Dan Feenberg, Peter Ganong, Erik Hurst, Greg Kaplan, Larry Katz, Pat Kehoe, Guido Lorenzoni, Iourii Manovskii, Kurt Mitman, Giuseppe Moscarini, Casey Mulligan, Nicolas Petrosky-Nadeau, Richard Rogerson, Rob Shimer, Harald Uhlig, Gianluca Violante, and numerous seminar participants. Much of this paper was written while Gabriel Chodorow-Reich was visiting the Julis-Rabinowitz Center at Princeton University. Loukas Karabarbounis thanks Chicago Booth for summer financial support. The Appendix that accompanies this paper is available at the authors' webpages. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.