How Supply Affects Employment in a Downturn: Another Exchange With Casey Mulligan

Casey Mulligan seems to believe that because some groups (i.e. older workers) can increase their employment in a downturn, that the problem is one of supply and not demand. As I noted in my past exchange, a recession does not mean that some demographic groups will not be preferred to others. In the downturn there has been an increase in employment for college grads also.

There is nothing inconsistent with the idea that demand is a constraint on employment yet some individuals may be able to b...