Theoretical dissertation proposal

The topic is Job Search over the Business Cycle

And please do use the following readings for references for producing the proposal

Mortensen, D. T., & Pissarides, C. A. (1994). Job creation and job destruction in the theory of

unemployment. The review of economic studies, 61(3), 397-415.

Shimer, R. (2005). The cyclical behavior of equilibrium unemployment and

vacancies. American economic review, 95(1), 25-49.

Pissarides, C. A. (2009). The unemployment volatility puzzle: Is wage stickiness the

answer?. Econometrica, 77(5), 1339-1369.

Hagedorn, M., & Manovskii, I. (2008). The cyclical behavior of equilibrium unemployment and

vacancies revisited. American Economic Review, 98(4), 1692-1706.

Haefke, C., Sonntag, M., & Van Rens, T. (2013). Wage rigidity and job creation. Journal of

monetary economics, 60(8), 887-899.

Gertler, M., Huckfeldt, C., & Trigari, A. (2020). Unemployment fluctuations, match quality, and

the wage cyclicality of new hires. The Review of Economic Studies, 87(4), 1876-1914.

Mercan, Y., Schoefer, B., & Sedlcek, P. (2021). A Congestion Theory of Unemployment

Fluctuations (No. w28771). National Bureau of Economic Research.

Please come up with at least 5 research questions so I can make a choice or a decision with,

Please find the sample dissertation proposal which is about the labour market.

Thank you so much!

Equilibrium Unemployment, Policy and Skills] Demographics Pissarides (2000) and Cahuc et al.(2014) explore the impact of income taxes, hiring subsidies, firing costs and other features of labour market policy in the canonical Diamond-Mortensen-Pissarides model of equilibrium unemployment. Unlike the canonical model, real workers differ along many dimensions, such as age and skills / qualifications. Extensions to the canonical model to capture workers with heterogeneous characteristics include tractable but limited treatments of skill difference (with two skill types) Cahuc and Zylberberg (2004), and of demographic differences, Cheron et al. (2013). From my preliminary reading and current understanding of the literature there has been relatively little analysis of labour market policy in models with heterogeneous workers (with much of the analysis looking at the nature of the labour market equilibrium that arises and unemployment differences by worker characteristic). The aim of my dissertation would be to explore various features of labour market policy in this richer context (probably either demographic features or skill differences). A tentative research question is 'What is the impact of economic policy on labour market outcomes (in a search and matching model with worker heterogeneity)?'. I want to write a theoretical dissertation. Ideally I would characterise the equilibrium outcomes (for unemployment and wages and inequalities in those variables) using pencil and paper, but I might also need to use computational tools to solve the model and might also wish to calibrate the model to data if feasible. I only have a limited understanding of the literature at the moment (due to time constraints) and I am a bit worried that studies which address the research questions that interest me have already been undertaken but that I just haven't found them yet. So, it may be that I will have to review the research question in due course. I would value your help with this aspect of the research question. Are you aware of other papers in this literature that address these questions and I or that I should read? Do you think that this is a suitable topic for an undergraduate dissertation? References Cahuc, P. and A. Zylberberg, (2004), Labor Economics, MIT Press, Cambridge, MA. Cahuc, P., A. Zylberberg and S. Carcillo (2014), Labor Economics, 2nd Edition, MIT Press, Cambridge, MA. Cheron, A., 1-0. Hairault and F. Langot, (2013), Life-Cycle Equilibrium Unemployment, Journal of Labor Economics, Vol. 31, No. 4 (October 2013), pp. 843-882. Pissarides, C., (2000), Equilibrium Unemployment, MIT Press, Cambridge, MA