Working Papers present research work by both Danmarks Nationalbank’s employees and our partners. Working Papers are primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.
Working paper: Occupation-industry mismatch in the cross-section and the aggregate
I define occupations that are employed in more industries as “broader” occupations. I study the implications of broadness for mismatch of the unemployed and vacancies across occupations and industries. I empirically find that workers in broader occupations are better insured against industry-specific shocks. I build a general equilibrium model that uses occupational broadness as a microfoundation of mismatch. The model matches the empirical findings but predicts that mismatch cannot significantly contribute to aggregate fluctuations in the unemployment rate. (Updated version – 21 April 2021)