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 …

data. We argue that coordination problems and multiple equilibria are the keys to explaining inflation persistence. We … of equilibria (consistent with a range for the rate of unemployment), where workers want to match the wage set by other … between unemployment rates of 4.7 and 6.5 percent, than outside these bounds, as predicted by our model …

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 …

small businesses in the United States are one of the drivers explaining the unemployment dynamics during the Great Recession …

Price-setting models with monopolistic competition and costs of changing prices exhibit coordination failure: in …, costless coordination; in practice, since agents will still have incentives to deviate from the benchmark equilibrium …, coordination is likely to require enforcement. We consider an alternative benchmark equilibrium in which coordination is enforced …

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 …