We reconsider the central role of the natural rate of unemployment (NRU) in forming policy decisions. We show that the … unemployment rate does not gravitate towards the NRU due to frictional growth, a phenomenon that encapsulates the interplay between … empirical analysis and find that the NRU explains only 33% of the unemployment variation, while frictional growth accounts for …

-to-job flows and labour force entries and exits. Employed job search is shown to have a substantial impact on unemployment dynamics … but a negligible one on the level of unemployment. More on-the-job search leads to lower unemployment inflow and outflow …, i.e. a more stagnant unemployment pool. With employed job search, the stock of vacancies is more cyclically sensitive …

average re-employment probabilities. Living in an area with high local unemployment reduces re-employment chances as does … somewhat if a worker is unemployed in an area with high overall unemployment. …

. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows …

cycle component. We find significantly larger unemployment responses to economic shocks for low-skilled workers relative to …

discriminate based on a year of entry to a firm, and develops an equilibrium model of wages and unemployment. We solve for the … dynamics of wages and unemployment under conditions of downward wage rigidity, where forward looking firms take into account …

in recessions by examining the movement of relative unemployment rates over the business cycle. Any conclusion drawn from … of unemployment are not examined. Using Current Population Survey data matched across adjacent months from 1989 to 2004 … the racial unemployment gap near the peak of the business cycle is driven by a reduction in the rate of job loss for …

what extent business cycles or unemployment levels influence entries into entrepreneurship. Our analysis for Germany … reveals that there is a positive relationship between unemployment rates and start-up activities. Moreover, new business … disentangling periods of low and high unemployment we find that the effect of unemployment on new business formation is only …