This paper analyzes the impact of supply shocks, demand shocks and policy shocks on labour market dynamics, using a consistent macroeconomic flow model of the Dutch labour market. The long run properties of the model mimic those of the theoretical equilibrium search models, with endogenous...

A sensitivity analysis using an empirical model of labour market dynamics shows that an increase in the pace of structural chance, which leads to an outward shift of the UV-curve, may have substantial effects on employment and unemployment especially when the initial pace of structural change is...