-run unemployment. In the short run, however, the union raises current wages above the efficient level, in order to appropriate …-perfect equilibrium, not only is unemployment well above its efficient level, but the union wage also exhibits endogenous real stickiness …

employment and unemployment. We use a model that features both frictions and an operative labor supply margin to examine the … robustness of this feature to the inclusion of a empirically reasonable labor supply channel. The response of unemployment to …

set of contingent claims conditional on this risk. We use the model to evaluate a tax-financed unemployment insurance … stochastic ones---generate rather limited unemployment effects, unless workers are close to indifferent between working and not …

market frictions. We characterize the distributions of employment, unemployment, wages and income within and between sectors … as a function of structural parameters. We find that greater firm heterogeneity increases unemployment, wage inequality … frictions have non-monotonic effects on aggregate unemployment and inequality through within- and between-sector components …