Galí, Jordi, 1961-Van Rens, Thijs, 1973-2021-03-232021-03-232021Galí J, van Rens T. The vanishing procyclicality of labour productivity. The Economic Journal. 2021 Jan;131(633):302-26. DOI: 10.1093/ej/ueaa0650013-0133http://hdl.handle.net/10230/46903We document two changes in post-war US macroeconomic dynamics: the procyclicality of labour productivity vanished, and the relative volatility of employment rose. We propose an explanation for these changes that is based on reduced hiring frictions due to improvements in information about the quality of job matches and the resulting decline in turnover. We develop a simple model with hiring frictions and variable effort to illustrate the mechanisms underlying our explanation. We show that our model qualitatively and quantitatively matches the observed changes in business cycle dynamics.application/pdfeng© The Author(s) 2020. Published by Oxford University Press on behalf of Royal Economic Society. This is an Open Access article distributed under the terms of the Creative Commons Attribution License http://creativecommons.org/licenses/by/4.0/, which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited.The vanishing procyclicality of labour productivityinfo:eu-repo/semantics/articlehttp://dx.doi.org/10.1093/ej/ueaa065info:eu-repo/semantics/openAccess