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 …

-market difficulties. Labor-market institutions seem to explain the different developments in the two economies. Danish institutions …-market institutions, which emphasize job security by keeping workers connected to their current employers, may have drawbacks when the …

From the early 1990s through the peak of the last business cycle, relatively low U.S. unemployment rates seemed to make … (OECD), the International Monetary Fund (IMF), and other international organizations all praised the U.S. unemployment … shows that in the current economic crisis, the U.S. unemployment rate ranks 4th to last among the major OECD countries. …

precautionary saving and a shift toward safer assets in the years leading up to unemployment, and depletion of savings during … unemployment. This suggests that at least some households can foresee and prepare for upcoming unemployment, which indicates that … private savings can complement publicly provided unemployment insurance. …

A standard model of equilibrium unemployment consists of static equations for real wage ambitions (wage curve) and real … unemployment approaches the NAIRU from any given initial value, inflation will be increasing or decreasing over time. We formalize …'s equations are re-interpretated as attractor relationships. We show that NAIRU unemployment dynamics are sufficient but not …

education groups, and the increase in unemployment at all levels of education. In contrast, in previous literature this type of … overeducation is key to understand the response of unemployment to the technology shock. …