job stayers is mostly accounted for by great wage adjustments during the period when the unemployment rate reaches a …

unemployment. The optimal policy response to the efficient labor market shock changes when real wages are sticky but remains …

This paper studies the role of labor market institutions in business cycle fluctuations. We develop a DSGE model with … search and matching frictions and incorporate a US unemployment insurance experience rating system. Layoff taxes based on … experience rating finance the cost of unemployment benefits and create considerable employment adjustment costs. Our framework …