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% REAMDE FILE
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% The Cyclicality of Labor Force Participation Flows: The Role of Labor
% Supply Elasticities and Wage Rigidity
% Cairo, Fujita, Morales-Jimenez
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% This version: January 2021
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- The replication files are organized in five folders: 
	1- Flows data: Includes the data files used in the paper.
	2- VAR_baseline: The code VAR_baseline.m generates the VAR results included in the main text of the paper. The execution of the code takes no more than a few seconds on the computing environment specified below. 
	3- VAR_sign: The code master_VARsign.m generates the VAR with sign restrictions results included in the Appendix. The execution of the code  takes no more than a few minutes. 
	4- Estimation: The code Estimation_srong.m runs the estimation of the model. The execution of the code takes about 8 hours. 
	5- Code_Figures: Includes the code to replicate all figures and tables in the text and Appendix. The names of the files are self-explanatory.

- We use dynare versions 4.4.3. and 4.4.2., Matlab 2019, and Stata/MP 16.1 on a Windows 10 machine equipped with Intel Core i7 processor and 8Gb of RAM.