interact and affect the evolution of unemployment rates and participation rates, the two main indicators of labour market … performance. Our analysis has two special features. First, apart from the two labour market states - employment and unemployment … that a shock to the net flow from unemployment to employment drive the unemployment rate and the participation rate in …

, labour and financial markets) and employment performance. Our analysis includes unemployment, inactivity and jobless rates … institutional rigidities affecting unemployment impact inactivity along the same line. To cope with common problems related to the … data for unemployment insurance net replacement rates. Moreover, we check for interdependencies across product and labour …

The active measures are the main strategies that have the effect of reducing the unemployment, on short, medium and …

Existing models of equilibrium unemployment with endogenous labor market participation are complex, generate … procyclical unemployment rates and cannot match unemployment variability relative to GDP. We embed endogenous participation in a … variabilities but also generates strongly countercyclical unemployment rates. With some wage rigidity the model also matches …