unemployment and its underlying duration distribution. We develop an analytically and computationally tractable stochastic … equilibrium model with heterogenous labor markets. In this model three different types of unemployment arise: search, rest and … reallocation unemployment. We document new evidence on unemployed workers’ gross occupational mobility and use it to calibrate the …

equilibrium model of wage dynamics and unemployment. The model is developed under the assumption of worker mobility, so that … Beaudry and DiNardo (1991). We solve for the dynamics of wages and unemployment, and show that real wages do not necessarily … to match actual unemployment and wage series. We also show that equal treatment follows in our model from the assumption …

downward rigidity, and magnifying the response of unemployment to negative shocks. We also consider layoffs and show that for a …

unemployment that are in line with the data. …

This paper points out an empirical failing of real business cycle models in which unemployment is endogenized through a … matching function. One can easily choose a calibration to make the cyclical fluctuation in unemployment as large in the model … as it is in the data, or to make the response of unemployment to a change in the unemployment benefit as small in the …

counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important …

Whenever unemployment stays high for an extended period, it is common to see analyses, statements, and rebuttals about … the extent to which the high unemployment is structural, not cyclical. This essay views the Beveridge Curve pattern of … unemployment and vacancy rates and the related matching function as proxies for the functioning of the labor market and explores …