We consider a dynamic general equilibrium model with collective wage bargaining and investigate how unemployment … unemployment persistence by its adverse impact on growth, and may even destabilize the adjustment path. If this is the case, a … future fiscal consolidation is needed which further raises unemployment. These results are consistent with empirical evidence …

, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are …

-induced) outside option of workers, such as a decrease in unemployment benefits, public wages or, to a lesser extent, public …

featured mainly declining unemployment rates. We develop a search and matching model with heterogeneous skills to explore the … role of structural and cyclical policies for this performance. Calibrating unemployment benefits to approximate legislation … before and after the reforms, we find a large reduction in unemployment and its duration, with the transition concluding …

frictions, which allows to analyze the response of equilibrium unemployment to fiscal measures. In order to illustrate some of …

inflation-unemployment trade-off we account for a time-varying inflation trend to control for the part of inflation that is not … affected by the cyclical component of unemployment. In addition we use shifts in the relative volatility of shocks to … unemployment and inflation to address the simultaneity problem in Phillips curve estimations. Applying the method of Rigobon and …