This paper discusses various concepts of unemployment rate benchmarks that are frequently used by policymakers for … particular, we propose two broad categories of unemployment rate benchmarks: (1) a longer-run unemployment rate expected to … prevail after adjusting to business cycle shocks and (2) a stable-price unemployment rate tied to inflationary pressures. We …

Why do more educated workers experience lower unemployment rates and lower employment volatility? A closer look at the …-specific human capital reduce the outside option of workers, implying less incentives to separate. The model generates unemployment …

payroll employment as well as unemployment and that increased persistence appears to be widespread across industries. At the …I examine whether the cyclical behavior of unemployment has changed over the post WWII period. Specifically, I test … whether cyclical movements in unemployment have become more persistent. Finding that they have, indeed, become more persistent …

This paper presents a framework to interpret movements in the Beveridge curve and analyze unemployment fluctuations. We … decompose the unemployment rate into three main components: (1) a component driven by changes in labor demand – movements along … driven by changes in the efficiency of matching unemployed workers to jobs. We find that cyclical movements in unemployment …

Why do more educated workers experience lower unemployment rates and lower employment volatility? A closer look at the …-specific human capital reduce the outside option of workers, implying less incentives to separate. The model generates unemployment …

observable factors affecting matching efficiency: (i) unemployment composition and (ii) dispersion in labor market conditions … exceptionally low matching efficiency can be attributed to composition. New highly disaggregated data on vacancies and unemployment …

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 …

This paper develops new estimates of flows into and out of unemployment that allow for unobserved heterogeneity across … workers as well as direct effects of unemployment duration on unemployment-exit probabilities. Unlike any previous paper in … shocks to the short-run, medium-run, and long-run variance of unemployment as well as to specific historical episodes. We …