Data

the stata table table .dta contains the following variables:

- u: log of unemployment U (downloaded from the BLS website, ``Unemployed 16 and over'' - LNU03000000)

- theta: log of labor market tightness V/U, where V is the number of job vacancies (downloaded from JOLTS, ``Job Openings'' -  JTU00000000JOL)

- jfr: log of job finding rate M/U, where M if the number of matches (downloaded from JOLTS, ``Hires'' - JTU00000000HIL)

The other variables, year, month, date and t are just date/time variables.

---------------------------------------------------------------------------

Programs

All three do-file programs can be run using table.dta and will produce the results shown in the paper.

In each do-file, there is a mapping between command lines and tables/columns of results in the paper.

red_estim.do runs the benchmark GMM estimations (results in sections 5, 6.1 and 6.3 of the paper).

red_estim_otherspecs.do runs estimations for alternate specifications (OLS, FD, etc., results in section 5 of the paper).

red_estim_nocrs.do runs the GMM estimation without the CRS assumption (results in section 6.2 of the paper).

Note: to produce the graphs in Figure 2, one needs to include the graph option in the estim_grid command defined in red_estim.do.