Unemployment and Endogenous Reallocation Over the Business Cycle

This paper studies the extent to which cyclicality of occupational mobility shapes that aggregate unemployment and its duration distribution. We document relation between workers' over long run business cycle. To interpret this evidence, we develop a multisector cycle model with heterogenous agents. The is quantitatively consistent several important features US labor market: procyclical gross countercyclical net mobility, large volatility cyclical properties distribution, among many others. Our analysis shows due changing career prospects, not occupation?wide differences, interacts conditions drive fluctuations rate.