In this paper, I show that the decline in household consumption during unemployment spells depends on both liquid and … illiquid asset positions. I also provide evidence that unemployment spells predict the withdrawal of illiquid assets …, particularly when households have few liquid assets. Motivated by these findings, I embed endogenous unemployment risk in a two …

the financial market, we address two prominent mechanism through which firms' financial constraints amplify unemployment … substantial decline in both unemployment and wages. Financial constraints therefore weaken the direct link between wage rigidity … and unemployment volatility. …

reduced the generosity of long-term unemployment benefits. We use a model with different unemployment durations, where the … the existing disagreement in the macroeconomic literature on the unemployment effects of Hartz IV. We find that Hartz IV … was a major driver for the decline of Germany's unemployment and that partial and equilibrium effect where of equal …

reduced the generosity of long-term unemployment benefits. We use a model with different unemployment durations, where the … the existing disagreement in the macroeconomic literature on the unemployment effects of Hartz IV. We find that Hartz IV … was a major driver for the decline of Germany's unemployment and that partial and equilibrium effect where of equal …