We introduce dynamic incentive contracts into a model of unemployment dynamics and present three results. First, wage … cyclicality from incentives does not dampen unemployment dynamics: the response of unemployment to shocks is first … cyclicality from bargaining dampens unemployment dynamics through the standard mechanism. Third, our calibrated model suggests 46 …

One of the strongest trends in recent macroeconomic modeling of labor market fluctuations is to treat unemployment … Unemployment," i.e., the extent to which increased unemployment during a recession arises from an increase in the number of … unemployment spells versus an increase in their duration. After broadly reviewing the previous literature, we replicate and extend …

productivity, real wages and employment. To quantify the effects of reallocation intensity on employment, we estimate regression … other variables as instruments. We find large positive effects of worker reallocation rates on employment, especially for …. These results suggest the U.S. economy faced serious impediments to high employment rates well before the Great Recession …

employment dynamics were almost entirely driven by temporary layoffs and later recalls. Taking these into account, we show that … labor market had largely recovered and was characterized by extremely tight markets and a slightly depressed employment … predictions that COVID would dramatically and permanently change the way we live and work. We do see that employment has …

Licensed workers could be shielded from unemployment during recession since occupational licensing laws are asymmetric …-in-differences event study research design that exploits cross-state variation in licensing laws to compare the unemployment rate between …, we find that licensing shields workers from a recession-induced increase in the unemployment rate of 0.82 p.p. during …

employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of …Most governments are mandated to maintain their economies at full employment. We propose that the best marker of full …). Accordingly, the efficient unemployment rate is the geometric average of the unemployment and vacancy rates: u* = √uv. We compute …

frictions characterized by employment loss and employment opportunity arrival shocks. We argue that it is able to account for … shocks play a key role in allowing the model to match the persistence of the employment and out of the labor force states …

This study measures the heterogeneity of establishment-level employment changes in the U.S. manufacturing sector over … reallocation and worker reallocation, to evaluate theories of heterogeneity in plant-level employment dynamics, and to establish …

responsible for the slow recovery of employment, though not for the initial drop. Monetary policy shocks predict an inflation rate … 0.5% below average. Government expenditure innovations do not contribute much either to inflation or to employment …