The current recession's impact on unemployment has been more pernicious than even the usual indicators show. The … credit expansion. The unemployment rate is likely to peak at 11.5 percent if today's crisis turns out to be similar to past … credit crunches. A vicious cycle with a feedback loop may continue to develop. Rising unemployment rates lead to heightened …

economy permanently operates below capacity due to both structural unemployment and underemployment. The latter is a direct … demand and supply shocks are opposite to those of the standard case and result in a co-movement of unemployment and … explain movements of unemployment and underemployment in opposite directions. Finally, we show that uctuations in the total …

In this paper, we show that underemployment and not necessarily high unemployment becomes the main measure of economic … and cost shocks can explain movements of unemployment and underemployment in opposite directions, while demand and supply … employment record and the absence of wage pressures despite low unemployment rates after the Great Recession …

In this paper, we argue that credit market imperfections impact not only the level of unemployment, but also its … steady-state unemployment, but also slow down the transitional dynamics. We then provide an empirical illustration based on a … persistence of unemployment …

: the large differences in unemployment risk across worker age-groups over the business cycle. Our search model features a … large real effects through firms' labor policies. Our model predicts higher unemployment risk of younger workers relative to …

In this paper, we argue that credit market imperfections impact not only the level of unemployment, but also its … steady-state unemployment, but also slow down the transitional dynamics. We then provide an empirical illustration based on a … persistence of unemployment. -- Credit markets ; labor markets ; unemployment ; credit constraints ; search frictions …

This paper introduces endogenous credit constraints in a search model of unemployment. These constraints generate …. Unemployed workers are hard to find jobs generating high and persistent unemployment …

economy permanently operates below capacity due to both structural unemployment and underemployment. The latter is a direct … demand and supply shocks are opposite to those of the standard case and result in a co-movement of unemployment and … explain movements of unemployment and underemployment in opposite directions. Finally, we show that fluctuations in the total …