In our earlier blog post, the first in this two-part series, we outlined Anton Cheremukhin and Paulina Restrepo-Echavarria’s dual vacancy model, which considers two separate job matching functions—one for unemployed workers and one for employed workers.1 In today’s post, we’ll use that model to determine how the separate matching functions affect the Beveridge curve, which plots the relationship between the job vacancy rate and the unemployment rate. This, in turn, will give us insight into whether a soft landing is possible. Adjusting the Beveridge Curve for the Dual Vacancy Model The next two figures show two ... (full story)