The paper was presented at the 2022 Carnegie-Rochester-NYU Conference on Public Policy on “Economic Resilience and Interconnectedness” held at the Tepper School of Business, Carnegie Mellon University in Pittsburgh on November 11-12, 2022.

We document a robust set of facts on spatial differences in unemployment, vacancies, and job filling, finding, and separation rates, and develop a theory of the geography of labor market dynamics.

The introduction of recall options provides a novel mechanism that reconciles the puzzle of a positive comovement between separation and job finding rate over the life cycle.

The introduction of recall options provides a novel mechanism that reconciles the puzzle of a positive comovement between separation and job finding rate over the life cycle.