interact and affect the evolution of unemployment rates and participation rates, the two main indicators of labour market … performance. Our analysis has two special features. First, apart from the two labour market states - employment and unemployment … that a shock to the net flow from unemployment to employment drive the unemployment rate and the participation rate in …

, labour and financial markets) and employment performance. Our analysis includes unemployment, inactivity and jobless rates … institutional rigidities affecting unemployment impact inactivity along the same line. To cope with common problems related to the … data for unemployment insurance net replacement rates. Moreover, we check for interdependencies across product and labour …

participation. A model that is calibrated to replicate the variability of unemployment and participation, and the negative … correlation of unemployment and GDP, implies an aggregate labor supply elasticity along the extensive margin of around 0.3 for men …

unemployment rates about the behavior of labor markets and the causes of joblessness are useful …