despite declines in unemployment rates. For the United States, these seemingly contradictory developments have been reconciled … natural unemployment rate (NAIRU), and (3) improved credibility of monetary policy. Here we ask whether comparable factors … between inflation, the unemployment rate, and structural factors using an extended Phillips curve model with quarterly data …

response to changes in the unemployment rate. This paper offers a theoretical justification for such a nonlinear policy rule …

unemployment among permanent job losers. This combination suggests that the welfare loss from cyclical increases in unemployment is …I examine whether the cyclical behavior of unemployment has changed over the post WWII period. Specifically, I test … whether cyclical movements in unemployment have become more persistent. Finding that they have, indeed, become more persistent …

Shimer (2005) argues that the Mortensen-Pissarides (MP) model of unemployment lacks an amplification mechanism because … it generates less than 10 percent of the observed business cycle fluctuations in unemployment given labor productivity … correctly identify the shocks driving unemployment. Using a New-Keynesian framework to control for the endogeneity of …

This paper presents a search model of unemployment with a new mechanism of job separation based on firms' demand … about unemployment that the Mortensen-Pissarides (1994) model has difficulties explaining jointly: (i) the unemployment …-vacancy correlation is negative, (ii) the contribution of the job separation rate to unemployment fluctuations is small but non …

This paper examines the determinants of the natural rate of unemployment using a combined cross section and time series … temporary employment in a local labor market tends to lower the natural rate of unemployment--most likely through the matching … as 1/4 percentage point. The results also indicate that unemployment insurance benefits tend to boost the natural rate …

It is frequently alleged that the persistent, high rates of unemployment in many European countries are due, at least …