Labor Markets and Business Cycles

"This essential book offers an insightful and often provocative analysis of labor market responses to business cycle shocks, and develops new ways of looking at this issue. The careful integration of theory and data, of earlier business cycle theory with search and matching, as well as the critique of wage setting, open up new areas that will inspire researchers for many years to come."--Christopher Pissarides, London School of Economics and Political Science

"Shimer's definitive account of the modern theory of labor market volatility presents many new results and deserves a prominent place on the bookshelf of every macroeconomist and labor economist."--Robert E. Hall, author of Forward-Looking Decision Making

"No other book on labor markets and business cycles treats search and matching models with the same detail. This will be a standard reference for advanced graduate students and researchers who are familiar with modern dynamic programming techniques."--Monika Merz, Bonn University