New data compel a new view of events in the labor market during a recession. Unemployment rises almost entirely because … finding from new data is that a large fraction of workers departing jobs move to new jobs without intervening unemployment. I … of the high magnitude actually observed. In the standard theory developed over the past two decades, the wage moves to …

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 …

The flow opportunity cost of moving from unemployment to employment consists of foregone public benefits and the … is procyclical and volatile over the business cycle. The estimated cyclicality implies far less unemployment volatility …

This paper develops a framework for analyzing unemployment in terms of …distribution of the inflow Into unemployment are the primary determinant of …drive the recession. In contrast to normal unemployment, cyclical unemployment …

dynamics in the tradition of Mortensen and Pissarides (1994). Our estimates discern 5 distinct types. Most unemployment comes … from just two of those types. Low employment types frequently circle among unemployment, short-term jobs, and being out of … the labor market. Short-term jobs play a role in the job-finding process related to the role of unemployment. These are …

for γ-workers. During the Great Recession, excess unemployment for α-workers rose by little and was reabsorbed quickly …; unemployment for γ-workers rose by 20 percentage points and was not reabsorbed 4 years after its peak. We use a search … unemployment during the Great Recession. Our view is that several puzzling micro and macro phenomena about the labor market are …

We develop a theory of labor markets with four features: search frictions, worker productivity shocks, wage rigidity …