RBC models with search unemployment and wage renegotiation generate too much wage volatility and too stable … unemployment rate. Shimer (2004) shows that it is possible to reproduce a volatility of unemployment similar to that observed in … unemployment …

unemployment rate. Exogenous shocks (such as aging) leading to lower interest rates also imply lower equilibrium unemployment rates …

the role of labor market imperfections and institutions. We setup a two-country overlapping generations model with search … unemployment, which we calibrate on EU15 and US data. Labor market imperfections are found to significantly increase the volume of … to investigate how demographic asymmetries may have contributed to unemployment and welfare changes in the recent past …