We build an analytically and computationally tractable stochastic equilibrium model of unemployment in heterogeneous … countercyclical unemployment, and is simultaneously consistent with procyclical reallocation, countercyclical separations and a … negatively-sloped Beveridge curve. Moreover, the model exhibits unemployment duration dependence, which (when calibrated to long …

, selective survey of the literature. Four fundamental questions are explored: how are unemployment, job vacancies, and employment …

high volatility of most of the key variables, the negative co-variation of unemployment and vacancies, and the behavior of …

The paper presents a general equilibrium model of search unemployment that incorporates absence from work as a distinct …

In this paper, in order to study the impact of offshoring on sectoral and economywide rates of unemployment, we … construct a two sector general equilibrium model in which labor is mobile across the two sectors, and unemployment is caused by … search frictions. We find that, contrary to general perception, wage increases and sectoral unemployment decreases due to …

optima, non-linear income taxation is a key complement to unemployment insurance. According to the level of the workers …

Unemployment may depend on equilibrium in other markets than the labor markets. This paper adresses this old idea by … effect of financial frictions on equilibrium unemployment is amplified by goods market frictions and vice versa. …