their unemployment rate rose less than the one of prime-age workers. This view is a myth: older workers are more sensitive …

that the canonical matching model under a very standard calibration is able to generate an important volatility of …In this paper we investigate the labor market dynamics in a matching model where fluctuations are driven by movements … unemployment and vacancies with respect to output. We estimate the structural model with the two shocks and using the Bayesian …

We show that in micro data, as well as in a search and matching model with endogenous separations and rigid wages …, separations and hence employment volatility are non-neutral to wage rigidities of incumbent workers. In contrast to when all wages … are flexible, the standard deviation of unemployment in a model with rigid wages for incumbent workers (only) matches the …