Learning on the Job and the Cost of Business Cycles
通过一个包含在职学习和失业期间技能损失的劳动力市场搜索模型，证明经济周期会因降低平均就业水平而减少福利，并量化了巨大的产出和福利成本。
We show that business cycles reduce welfare through a decrease in the average level of employment in a labor market search model with learning on the job and skill loss during unemployment. Empirically, unemployment and the job-finding rate are negatively correlated. Since new jobs are the product of these two from the employment transition equation, business cycles imply fewer new jobs. Learning on the job implies that the resulting decrease in employment reduces aggregate human capital. This reduces incentives to post vacancies, further decreasing employment and human capital. We quantify this mechanism and find large output and welfare costs of business cycles.