higher wages. This increases firms' incentives to post more vacancies, which makes unemployment volatile and sensitive to … aggregate shocks. The model is robust to two major criticisms of existing theories of sluggish wages and volatile unemployment … explains 70% of unemployment volatility …

unemployment. Using a standard model, we show that three factors can shift the Beveridge curve: reduced-form matching efficiency … shift in vacancies given unemployment. In previous recessions changes in matching efficiency were relatively unimportant … analyses estimating the natural rate of unemployment …

We investigate the connection between commodity price shocks and unemployment in advanced resource-rich small open … estimates suggest a one basis point decline in the unemployment rate and at its peak a 0.3% increase in unfilled vacancies. We … workers to rise. As a result, unemployment falls, even if employment in the commodity-producing sector is negligible. For …

wage and price inflation. On the price front, we find that in our VAR inflation jumps in response to an identified … inflation inertia like that commonly found in models used for monetary policy evaluation. On the wage front, we find evidence … for significant inertia in wages and some intrinsic inertia in nominal wage inflation. Our results provide support for the …

unemployment remains elevated, and a ?wageless\" phase, in which employment recovers but wages remain depressed Calibrating the … model suggests that the U.S. unemployment rate may need to fall to around 3 percent before labor compensation recovers to …