employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of …Most governments are mandated to maintain their economies at full employment. We propose that the best marker of full …). Accordingly, the efficient unemployment rate is the geometric average of the unemployment and vacancy rates: u* = √uv. We compute …

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 …

control for low-frequency movements in inflation, unemployment, and growth that are pervasive in the post-WWII period. We show … that cyclical fluctuations of inflation are related to cyclical movements in real activity and unemployment, in line with …

. Government incentives to production may alleviate high unemployment in this economy, but at the cost of exacerbating sclerosis …

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 …

This paper evaluates the response of employment to exchange rate shocks at the industry level for the G-7 countries … data are consistent with the view that employment in European industries, at least France and Germany, is much less … United Kingdom and Italy all appear to adjust more quickly. German and Japanese employment are quite insensitive to exchange …

the unskilled. By contrast, in Europe it is undoubtedly the rise and persistence of unemployment. Technology has been … European unemployment. This paper seeks to provide a unified account of these major factor market developments. It models the … impact of technical change on relative wages and unemployment in a world in which one country has flexible and the other …