- A. Mathematical details Continuous-time vacancy-flow model The following is essentially a continuous-time version of the vacancy-flow model presented in Davis, Faberman, and Haltiwanger (2010). I develop the model at the joint industry, indexed by , and occupation, indexed by , level. I denote time by the subscript and assume it to be measured in months. In particular, I consider a representative month, for which ( -. In terms of notation, is the number of job openings in industry for jobs of occupation . is the number of persons hired by industry in occupation since the beginning of the month, i.e. since . This also means that by definition. To match the JOLTS data with data on labor market flows from the CPS, I define as the number of persons hired in ( ) since the beginning of the month who are still in the job at time . Just like for hires, since is a flow variable, .
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- Similar to Davis, Faberman, and Haltiwanger (2010), the model I use describes the laws of motion of , , and as a function of hazard and arrival rates.33 I assume that these hazard and arrival rates are constant over the month we consider. Therefore, I drop their time-subscript.
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Sterk, Vincent (2010), âHome Equity, Mobility, and Macroeconomic Fluctuations,â DNB Working Paper No. 265.
- The Mix of U.S. Job Openings and Hires Dickens, William T., and Robert K. Triest (2012), âPotential Effects of the Great Recession on the U.S. Labor Market,â B.E. Journal of Macroeconomics, forthcoming.
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