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 …

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

, this transformation took place within just a few years. Until the mid-2000s job opportunities were scarce and unemployment … was high. But since then labor demand has picked up and unemployment has dropped substantially. In contrast to the earlier …

costs influence insider wages and outsiders’ opportunities and how these costs affect employment and unemployment. We also … address the more complex, and open, question of how employment and unemployment move through time, in response to labor market …

account for the empirical relation between the job-finding rate and the vacancy-unemployment ratio, provided that search costs …

This paper tests whether aggregate matching is consistent with unemployment being mainly due to search frictions or due … with reference to the design of optimal unemployment insurance programs. …

. This model yields a simple relationship between (i) the unemployment rate, (ii) the value of non-market time, and (iii) the … and allow for measurement error. The estimated wage dispersion and mismatch for the US is consistent with an unemployment …