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 …

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 …

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

. The model delivers a static wage Phillips curve linking current wage inflation to current unemployment. For standard … inflation and current unemployment. This result puts in perspective the role played by the forward-looking component of the new …

a demand-driven recession, inflation falls, preventing real wages from falling, leading to unemployment, while inflation …

and perfectly flexible prices and wages, give rise to cyclical variations in unemployment whose character closely …

consumption across states and times. Compared to the first best, there will be too little search. Optimal unemployment programs … welfare and may even increase GDP. Our analytical results suggest that welfare is higher if the unemployment benefits program … includes income-contingent unemployment loans (ICL), where the amount repaid depends on the individual's future income. Such …

provided unemployment insurance (UI) and loans against pension accounts changes over time in a model where unemployment may … unemployment; and even more so when there is a chance that the loan will not be repaid. As we present the optimal mix of loans and … loans should still be a part of the unemployment package for the young unemployed. We also show that, if the incidence of …

We design and field an innovative survey of unemployment insurance (UI) recipients that yields new insights about wage … efficient separations that holds in leading theories of job separations, frictional unemployment, and job ladders. We draw on …