Data and Replication Code for "Temporary Layoffs, Firm Entry and Exit Dynamics, and Aggregate Fluctuations"

We build a model to study how the countercyclicality of temporary<br>layoffs in U.S. data affects unemployment, firm entry and exit dynamics,<br>and macroeconomic fluctuations. The model can quantitatively generate<br>the rich cyclical dynamics of temporary layoffs, unemployment, and<br>firms in the data. We show that the countercyclicality of temporary<br>layoffs plays a key role in limiting the contraction in job creation<br>and the rise in unemployment during recessions. Moreover, amid factual<br>wage dynamics, the countercyclical buffer from temporary layoffs extends<br>beyond the labor market and limits the depth of contractions in the<br>number of firms and GDP, with the interaction between temporary layoffs<br>and endogenous firm exit being particularly important in shaping the<br>magnitude of the buffer effect. Finally, despite limiting the magnitude<br>of employment and output contractions during recessions, countercyclical<br>temporary layoffs appear to have little influence on the pace of recoveries.<br><br>