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 …

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 … payroll employment as well as unemployment and that increased persistence appears to be widespread across industries. At the …

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 …