Researchers introduced new monthly data series for labor market separations. These series classify separations by reason and destination. The standard labor market model shows significant inaccuracies when confronted with this data. A revised model incorporating selective layoffs and random quits corrects these issues. This new framework alters the understanding of recessions and their welfare costs.
https://www.minneapolisfed.org/research/institute-working-papers/what-quits-and-layoffs-reveal-about-the-business-cycle