We construct a utility-based model of fluctuations with nominal rigidities and unemployment. We first show that under a … standard utility specification, productivity shocks have no effect on unemployment in the constrained efficient allocation … and wages. Inefficient unemployment fluctuations arise when we introduce real-wage rigidities. As a result, in the …

unemployment. The authors reach two main conclusions about this body of work. First, there has been considerable theoretical … technological progress and unemployment. Second, empirical knowledge lags behind. Economists don't have a good quantitative … of wages to unemployment and the rise of European unemployment. …

Behind similar unemployment rates in the United States and Portugal hide two very different labor markets. Unemployment … duration is three times longer in Portugal than in the United States. Symmetrically, flows of workers into unemployment are … Portugal. High employment protection makes economies more sclerotic; but because it affects unemployment duration and worker …