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 …

structural change. Our objective is to shed light on the way labor market institutions affect aggregate employment, job …

the bottom of the wage distribution. By using this framework, we shed light on the way in which labour market institutions …

business cycle facts. -- business cycle ; search frictions ; skill specic unemployment ; skill substitutability …

unemployment risks, which is consistent with empirical observations for European countries. -- Human capital ; search frictions …

unemployment and vacancies with respect to output. We estimate the structural model with the two shocks and using the Bayesian … methodology. The bulk of variations in unemployment and vacancies is mainly explained by disturbances pertaining to the discount …