This dissertation explores the microeconomic and aggregate implications of an array of employmentadjustment frictions. Chapter 1 investigates the JOBS Bank, a unique employment adjustment cost that prevailed in the domestic automobile industry for nearly 20 years. The JOBS Bank required...

This paper seeks to contribute to the literature on downward nominal wage rigidity (DNWR) along two dimensions. First, we formulate and solve an explicit model of wage-setting in the presence of worker resistance to nominal wage cuts - something that has previously been considered intractable....

The increase in unemployment in the United Kingdom that accompanied the Great Recession has been conspicuous by its moderation. The rise in joblessness is dwarfed by the recent experience of the United States, by past recessionary episodes in the U.K. and by the contraction in GDP in the U.K....