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 …

market sorting, and aggregate shocks. In response to a positive productivity shock, incentives to sort increase …. The distribution of unemployment worker types adjusts slowly, which amplifies job creation in the short run. In the long … run, falling unemployment curtails the firms' vacancy posting. The model closely matches time-series moments from U …

quantitative effects of (i) aggregate productivity shocks on unemployment and (ii) unemployment benefits on unemployment. This … model, unemployment benefits affect households' behavior directly, without having to run via the bargained wage. A … effect of benefits on unemployment. Our analysis shows the importance of investigating the effects of policies on the …

quantitative effects of (i) aggregate productivity shocks on unemployment and (ii) unemployment benefits on unemployment. This … model, unemployment benefits affect households' behavior directly, without having to run via the bargained wage. A … effect of benefits on unemployment. Our analysis shows the importance of investigating the effects of policies on the …

We ask whether sectoral shocks and the subsequent labor reallocation are responsible for unemployment within selected … is linked to unemployment in country specific dynamic models. For Spain, the ADL-model estimation reveals a significant … impact of sectoral reallocation on unemployment that goes beyond usual business cycle patterns. In Italy, there is weaker yet …

current endogenous countercyclical uncertainty shock makes risk averse workers more willing to provide imperfectly monitored …

that a shock to the net flow from unemployment to employment drive the unemployment rate and the participation rate in … opposite directions while a shock to the net flow from not in the labour force to unemployment drives the rates in the same … interact and affect the evolution of unemployment rates and participation rates, the two main indicators of labour market …

that a shock to the net flow from unemployment to employment drives the unemployment rate and the participation rate in … opposite directions while a shock to the net flow from not in the labour force to unemployment drives the rates in the same … interact and affect the evolution of unemployment rates and participation rates, the two main indicators of labour market …