This paper analyses how labour market heterogeneity affects unemployment, productivity and business cycle dynamics that … growth dynamics. First, as the composition of labour market skills leads to supply segmentation, the relative scarcity of … skilled workers increases the natural rate of unemployment and reduces total factor productivity with long-run effects on the …

paper, we present a model with equilibrium unemployment which has three distinctive properties. First, using a search and …, which allows the model to reproduce the fluctuations of unemployment over the business cycle. And third, the model implies a … reasonable elasticity of steady state unemployment with respect to changes in benefits. The calibration of the model implies low …

paper, we present a model with equilibrium unemployment which has three distinctive properties. First, using a search and …, which allows the model to reproduce the fluctuations of unemployment over the business cycle. And third, the model implies a … reasonable elasticity of steady state unemployment with respect to changes in benefits. The calibration of the model implies low …

-cycle-frequency fluctuations in unemployment and job vacancies, given shocks of a plausible magnitude. We use data on the cost of vacancy creation …

, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are lose …

of the job finding rate explain up to 80% of the unemployment fluctuations for the less educated. We then construct a …

, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are …

We consider a model with frictional unemployment and staggered wage bargaining where hours worked are negotiated every … period. The workers’ bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence … the new entrants wage rigidity required to match observed unemployment volatility. …

expansionary demand shock and to an inflationary supply shock under the Taylor rule, asymmetric unemployment targeting, and average … inflation targeting. For each rule we distinguish between cases with zero weight on the unemployment gap and a negative response … to rising unemployment. Across all rules, responding to unemployment leads to lower losses of employment and higher …

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 …