unemployment can arise in such a framework without placing any a priori restrictions on either wages or severance payments. The … model also implies that firms will practice a two-tier system of adjusting their labor force. In the first stage, workers …

In this paper, we present a simple, reduced form model of comovements in real activity and unemployment flows and use … it to uncover the trend changes in these flows, which determine the trend in the unemployment rate. We argue that this … stable for decades, declined by a significant margin in the last decade, pushing trend unemployment up. On the other hand …

This paper proposes an empirical method for estimating a long-run trend for the unemployment rate that is grounded in … the modern theory of unemployment. I write down an unobserved-components model and identify the cyclical and trend … components of the underlying unemployment flows, which in turn imply a timevarying estimate of the unemployment trend, the …

We show that the inability of a standardly-calibrated stochastic labor search-and-matching model to account for the … observed volatility of unemployment and vacancies extends beyond U.S. data to a set of OECD countries. We also argue that using … labor market volatility magnitudes seen in the data depends crucially on how persistent the estimated productivity process …

role of labor force participation in determining the unemployment rate trend. We find an inverse V-shaped pattern for … Turkey’s unemployment rate trend over time, currently between 8.5 percent and 9 percent, with an increasing labor market …This paper measures flow rates into and out of unemployment for Turkey and uses them to estimate the unemployment rate …

This paper extends the Pissarides (2000) model of the labor market to include crime and punishment `a la Becker (1968 …). All workers, irrespective of their labor force status can commit crimes and the employment contract is determined … optimally. The model is used to study, analytically and quantitatively, the effects of various labor market and crime policies …

-run positive relationship between inflation and unemployment. …