The paper evaluates the quantitative implications of incorporating labor-market search into a real-business-cycle (RBC) model. It finds that including search improves the model's empirical performance in several ways. Hours fluctuate more than wages, and the contemporaneous correlation between hours and productivity falls. The model also replicates the observation that output growth displays positive autocorrelation at short horizons. These results suggest that labor-market search plays a quantitatively important role in explaining business-cycle fluctuations. The paper examines a search-based RBC model where employment is determined through a search framework rather than the standard Walrasian mechanism. This model incorporates labor-market search, which is shown to generate key business-cycle facts, such as the persistence and variability in unemployment, the negative correlation between vacancies and unemployment, and the asymmetric dynamic correlation between hours and productivity. The study integrates a search framework into a standard RBC model, allowing for the analysis of how labor-market search affects aggregate fluctuations. The model is calibrated and simulated to compare its performance with real data. The results show that the search model accounts for the observed pattern of aggregate economic activity reasonably well, including persistent unemployment, a negatively-sloped Beveridge curve, and the observation that most of the variability in the aggregate-labor input is due to cyclical adjustments in employment rather than hours worked per employee. The search model also generates a lower contemporaneous correlation between hours and productivity and different output dynamics compared to the standard RBC model. The paper concludes that incorporating labor-market search into an RBC model leads to a considerable improvement in three key dimensions: hours fluctuate more than wages, the contemporaneous correlation between hours and productivity is lower, and the model replicates the observed dynamic pattern of output growth. The paper is organized into sections describing the model, its parametrization and calibration, simulation results, and the quantitative implications of introducing exogenous structural disturbances. The model is shown to replicate key business-cycle facts, including the observed volatility in job availability and the asymmetric dynamic correlation between hours and productivity. The study highlights the importance of labor-market search in explaining business-cycle fluctuations and the quantitative significance of the propagation mechanism embedded in the search economy.The paper evaluates the quantitative implications of incorporating labor-market search into a real-business-cycle (RBC) model. It finds that including search improves the model's empirical performance in several ways. Hours fluctuate more than wages, and the contemporaneous correlation between hours and productivity falls. The model also replicates the observation that output growth displays positive autocorrelation at short horizons. These results suggest that labor-market search plays a quantitatively important role in explaining business-cycle fluctuations. The paper examines a search-based RBC model where employment is determined through a search framework rather than the standard Walrasian mechanism. This model incorporates labor-market search, which is shown to generate key business-cycle facts, such as the persistence and variability in unemployment, the negative correlation between vacancies and unemployment, and the asymmetric dynamic correlation between hours and productivity. The study integrates a search framework into a standard RBC model, allowing for the analysis of how labor-market search affects aggregate fluctuations. The model is calibrated and simulated to compare its performance with real data. The results show that the search model accounts for the observed pattern of aggregate economic activity reasonably well, including persistent unemployment, a negatively-sloped Beveridge curve, and the observation that most of the variability in the aggregate-labor input is due to cyclical adjustments in employment rather than hours worked per employee. The search model also generates a lower contemporaneous correlation between hours and productivity and different output dynamics compared to the standard RBC model. The paper concludes that incorporating labor-market search into an RBC model leads to a considerable improvement in three key dimensions: hours fluctuate more than wages, the contemporaneous correlation between hours and productivity is lower, and the model replicates the observed dynamic pattern of output growth. The paper is organized into sections describing the model, its parametrization and calibration, simulation results, and the quantitative implications of introducing exogenous structural disturbances. The model is shown to replicate key business-cycle facts, including the observed volatility in job availability and the asymmetric dynamic correlation between hours and productivity. The study highlights the importance of labor-market search in explaining business-cycle fluctuations and the quantitative significance of the propagation mechanism embedded in the search economy.