employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of …). Accordingly, the efficient unemployment rate is the geometric average of the unemployment and vacancy rates: u* = √uv. We compute …

Most economists maintain that the labor market in the United States is 'tight' because unemployment rates are low. They … infer from this that there is potential for wage-push inflation. However, real wages are falling rapidly at present and …, prior to that, real wages had been stagnant for some time. We show that unemployment is not key to understanding wage …

We introduce dynamic incentive contracts into a model of unemployment dynamics and present three results. First, wage … cyclicality from incentives does not dampen unemployment dynamics: the response of unemployment to shocks is first … cyclicality from bargaining dampens unemployment dynamics through the standard mechanism. Third, our calibrated model suggests 46 …

We show that the largest increase in unemployment benefits in U.S. history had large spending impacts and small job …

Immigration is often blamed for increasing unemployment among local workers. However, standard models, such as the … labor market without affecting local unemployment. This paper presents a more general model of migration that allows for the … possibility that not only the wages but also the unemployment rate of local workers may be affected by the arrival of newcomers …

for the unemployment-inflation tradeoff and for the conduct of monetary policy.<br><br>We proceed in two steps. We first … setting by firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence … of labor market frictions and real wage rigidities. We show the nature of the tradeoff between inflation and unemployment …

-market recovery from financial crises is characterized by either higher unemployment ("jobless recovery") or a lower real wage … ("wageless recovery"). Second, inflation determines the type of recovery: low inflation (below 30 percent annual rate) is … associated with jobless recovery, while high inflation is associated with wageless recovery. The paper shows that this pattern of …

This paper reexamines the Phillips and Beveridge curves to explain the inflation surge in the U.S. during the 2020s. We … almost exclusively through a drop in vacancies rather than an increase in unemployment. This feature matches the U … five other inflation surges over the past 111 years where the Beveridge threshold was breached. We define a Beveridge …