High rates of unemployment entail substantial costs to the working population in terms of reduced subjective well … sensitivity of subjective well-being to fluctuations in unemployment rates is much lower in the public sector than in the private … unemployment. …

This paper provides a critique of the "unemployment invariance hypothesis," according to which the behavior of the … labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity, and … equilibrating mechanisms to ensure unemployment invariance and that other markets may perform part of the equilibrating process as …

This paper provides evidence on the behavior of reservation wages over the spell of unemployment using high … to 24 weeks, we find that self‐reported reservation wages decline at a modest rate over the spell of unemployment, with … point estimates ranging from 0.05 to 0.14 percent per week of unemployment. The decline in reservation wages is driven …

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 …

-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 …