We incorporate imperfectly insured unemployment in the finance constrained economy proposed by Woodford (1986), by … introducing unions and unemployment benefits financed by labor taxation. We show that this simple extension of the Woodford model …

models and assess their ability to detect in real-time recession signals. In this respect, we have built an historical …-term economic outlook, namely the Industrial Production Index and the Unemployment Rate. …

determine unemployment. We show that the impact of financial variables depends strongly on the labour market context. Increased … market capitalization as well as decreased banking concentration reduce unemployment if the level of labour market regulation … intermediated credit worsens unemployment when the labour market is weakly regulated and coordinated, whereas it reduces …

We explore whether finance influences the impact of labour market institutions on unemployment. Using a data set of 18 … market variables (labour market regulation, union density, coordination in wage bargaining) to unemployment are a ffected by … estimation. In Australia, Belgium, Italy, Japan and Spain, accounting for financial indicators mitigates the bene fits of labour …

.e., recession or expansion). Two notions, notably the "employer selection" and the "worker disciplinary effect", can be useful in … speculating on the relationship. The general idea is that recessions are linked with higher unemployment, which is in turn linked … likely for people to fall genuinely ill in the first place. This then leads to the grim "paradox" that at times of recession …