the model’s failure to match the observed cyclical volatility of unemployment.. Job creation in the model is influenced by … are consistent with the evidence. Therefore explanations of the unemployment volatility puzzle have to preserve the … cyclical volatility of wages. I discuss some extensions of the model that can increase cyclical unemployment volatility through …

. Disaggregation by gender is necessary. Endogeneity of participation levels with respect to unemployment is treated in two ways, by … unemployment cannot be rejected. …

becoming unemployed, the costs of unemployment in terms of real wages losses and the probability that the continuously employed …