We conduct an accounting exercise of the role of worker flows between unemployment, employment, and labor force … nonparticipation in the dynamics of the aggregate unemployment rate across four recent recessions: 1982-1983, 1990-1991, 2001, and 2007 … employment and unemployment to account for the dynamics of the unemployment rate, this was not true in the Great Recession. The …

Shimer (2012) accounts for the volatility of unemployment based on a model of homogeneous unemployment. Using data on … short-term unemployment he finds that most of unemployment volatility is accounted for by variations in the exit rate from … unemployment. The assumption of homogeneous exit rates is inconsistent with the observed negative duration dependence of …

based on the behavior of individual wages and turnover. I find that a one percentage point increase in unemployment …

the textbook search and matching model cannot simultaneously generate the empirical elasticities of the vacancy-unemployment …