A search and matching model, when calibrated to the mean and volatility of unemployment in the postwar sample, can … potentially explain the large unemployment dynamics in the Great Depression. The limited response of wages to labor market … conditions from credible bargaining and the congestion externality from matching frictions cause the unemployment rate to rise …

frictions characterized by employment loss and employment opportunity arrival shocks. We argue that it is able to account for … shocks play a key role in allowing the model to match the persistence of the employment and out of the labor force states …

We provide a unified discussion of the relations among flows of workers, changes in employment and changes in the … firms in 1988 and 1990) we discover that: 1) Nearly half of all hiring is by firms where employment is not growing; 2) Over … imply that macroeconomic fluctuations can have substantial effects beyond those indicated by net employment changes at the …

Two propositions figure prominently in explanations for Britain's comparatively low growth in employment: first, the … wage-setting mechanism is insufficiently responsive to the growth of unemployment and, second, there exists a well …-defined negative causal relationship from wages to employment with the features of a conventional labor demand function. Using …

European unemployment is widely regarded as a problem of excessive real wages. This view as it is usually expressed … unemployed because it suggests that increases in employment will require reductions in the real wages of those currently employed …. The first part of this paper shows that increases in employment in Europe are likely to be associated with rising real …

employment and unemployment. We use a model that features both frictions and an operative labor supply margin to examine the … robustness of this feature to the inclusion of a empirically reasonable labor supply channel. The response of unemployment to … effects of frictions on steady state employment relative to the simplest matching model, and two common extensions. We also …

hysteresis embodying the idea that the equilibrium unemployment rate depends on the history of the actual unemployment rate. This …The recent European experience of high persistent unemployment has led to the development of theories of unemployment … paper summarizes two directions of research on hysteresis that appear especially promising. Membership theories are based on …