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 …

density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our …

We build an analytically and computationally tractable stochastic equilibrium model of unemployment in heterogeneous … countercyclical unemployment, and is simultaneously consistent with procyclical reallocation, countercyclical separations and a … negatively-sloped Beveridge curve. Moreover, the model exhibits unemployment duration dependence, which (when calibrated to long …

part-time workers. A one percentage point increase in the unemployment rate led to an average decline in real hourly wages … of new hires are not helpful for understanding the behaviour of unemployment over the business cycle …

This paper studies the effect of two labor market institutions, unemployment insurance (UI) and job search assistance … search unemployment, skill depreciation during unemployment, and idiosyncratic as well as aggregate labor market risk. The …

counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important …