The recent financial crises, alongside a dramatic rise in unemployment on both sides of the Atlantic, suggest that … shock. Third, we present evidence coherent with the idea that more leveraged sectors experience larger employment volatility … in normal times deep capital markets lead to tight labor markets. After an adverse liquidity shock, firms that rely much …

The recent financial crises, alongside a dramatic rise in unemployment on both sides of the Atlantic, suggest that … shock. Third, we present evidence coherent with the idea that more leveraged sectors experience larger employment volatility … in normal times deep capital markets lead to tight labor markets. After an adverse liquidity shock, firms that rely much …

the unemployment rate. Our results are threefold. First, only a minor part of the rise in uncertainty measures during the … percentage point of the drop in GDP, macroeconomic uncertainty shocks increased the unemployment rate by up to 0.7 percentage …