unemployment to non-participation in equilibrium. In contrast, existing models typically maintain stationarity and appeal to … exogenous stochastic shocks to generate transitions from unemployment to non-participation. Our model is based on relaxing a … first implication of the model is a declining hazard from unemployment to employment, arising due to erosion of self …

the inflation rate, but they very seldom cut nominal wages. This pattern suggests that workers exhibit a special … compare the inflation rate to the wage change before it becomes clear whether the change increases or decreases utility, thus … inflation rate. Although emotions may benefit individual workers, by strengthening their bargaining position and preventing wage …

markets in Germany. This result is robust to stratifying by age, sex, education, national origin, and a variety of other …