"unemployment volatility puzzle". We let new matches andcontinuing jobs differ by their productivity levels and by their sensitivity …

Since the advent of Heterogeneous Agent New Keynesian (HANK) models, countercyclical unemployment risk has been deemed … an important amplification mechanism for business cycles shocks. Yet, the aggregate effects of such "unemployment fears … model. While unemployment fears can exert noticeable aggregate effects, we find their magnitude to depend importantly on the …

time, labor markets are strongly responsive to macro uncertainty as the unemployment rate and the job separation rate rise …, being subject to higher unemployment risk, contract consumption more in response to heightened uncertainty, and firms that …

create disincentives to work, such as high tax wedges and high unemployment benefits, or enforced reductions in working hours …