Existing models of equilibrium unemployment with endogenous labor market participation are complex, generate … procyclical unemployment rates and cannot match unemployment variability relative to GDP. We embed endogenous participation in a … variabilities but also generates strongly countercyclical unemployment rates. With some wage rigidity the model also matches …

replacement rates or initial tax rates are high, while no increase in unemployment occurs when institutions are "employment …This paper explains the divergent behavior of European an US unemployment rates using a job market matching model of … the labor market with an interaction between shocks an institutions. It shows that a reduction in TF growth rates, an …

Structural unemployment is due to mismatch between available jobs and workers. We formalize this concept in a simple … costs across segments generate structural unemployment. We estimate the contribution of these costs to fluctuations in US … unemployment, operationalizing segments as states or industries. Most structural unemployment is due to wage bargaining costs …

predictions of the model change very little, but the welfare costs of unemployment are much larger because unemployment risk is … distributed unequally across workers. As a result, optimal unemployment insurance may be higher and welfare is lower if hiring is …

According to Ljungqvist and Sargent (1998), high European unemployment since the 1980s can be explained by a rise in … to high unemployment benefits. In this paper we reassess the turbulence-unemployment relationship using a matching model … Lungqvist and Sargent (1998, 2004) are reversed, and higher turbulence leads to a reduction in unemployment. Thus, changes in …

We consider the dynamic relationship between product market entry regulation and equilibrium unemployment. The main … bargaining. Product market competition affects unemployment by two channels: the output expansion effect and a countervailing … perform a policy experiment to assess whether the decrease in trend unemployment during the 1980’s and 1990’s could be …