market improved from 2010 to 2014. We find that a 1 percentage point reduction in the local unemployment rate is associated …

facts. -- sorting ; unemployment ; business cycles ; search-matching ; vacancies …

labor markets. Upon a neutral shock, total unemployment decrease is two-staged: firstly with a reduction in unskilled … unemployment, and then due to a sharp decline of skilled unemployment when skill substitution dominates. A higher elasticity of …-specific unemployment ; human capital investment ; idiosyncratic shock ; skill substitution ; search and matching …

driving this result are pro-cyclical increases in the probability of skill loss during unemployment: these provide incentives …. Compositional changes in the unemployment pool, on the other hand, play a negligible role for empirically plausible rates of skill … depreciation, which imply a relatively slow process compared to the duration of unemployment spells …

shock. Although the model generates a jobless recovery, its implications on unemployment duration are not entirely …

/4 of mismatches is efficient and attenuates polarization and unemployment over the cycle …

reveals that 1/4 of mismatches is efficient and attenuates polarization and unemployment over the cycle …