We construct and calibrate a general equilibrium business cycle model with unemployment and precautionary saving. We …' income riskier, both by increasing the unconditional probability of unusually long unemployment spells, and by making wages … fiscal policy offsets the cycle, holding unemployment benefits constant but varying the tax rate procyclically to smooth …

characterized by matching frictions and costly screening. When effort in improving ability raises both the mean and the variance of … distribution of firm characteristics, sorting patterns between firms and workers, and unemployment rates that can help explaining …

This paper explains the divergent behavior of European an US unemployment rates using a job market matching model of … robust explanation for the European unemployment puzzle in the context of a matching model with both endogenous job creation … increase in real interest rates, and an increase in tax rates leads to a permanent increase in unemployment rates when the …

The paper shows that a matching model where technological change is partially embodied in the job match is successful … in explaining the variability of unemployment and vacancies. If we incorporate long-term wage contracts into the model …

A generalized rise in unemployment rates for both college and high-school graduates, a widening education wage premium … in educational attainment. First, it develops an equilibrium search and matching model of the labor market where … considerable part of the changes but fails to produce the increase in unemployment for the educated labor force. The mismatch shock …

unemployment. But many orthodox reforms of the labor market have proved difficult to implement because of political opposition. For …

summarized as the very existence of unemployment generating political support for "sclerosis". This may help to explain the timid …

consumption by running down their assets, while the employed save to buffer against future unemployment spells. I also show that …, unlike in models with exogenous income streams, unemployment transfers, by allowing agents to attain higher wages do not …

fill jobs. Moreover, unemployment rates are higher in industries which use employee referrals more extensively. This paper … develops an equilibrium matching model which can explain these empirical regularities. In this model, the matching process … search is, however, not necessarily efficient. Congestion externalities in referral search imply that unemployment would be …