We combine micro and macro unemployment duration data to study the effects of the business cycle on the outflow from … unemployment. We allow the cycle to affect individual exit probabilities of unemployed workers as well as the composition of the … total inflow into unemployment. We estimate the model using (micro) survey data and (macro) administrative data from France …

decreasing in the substitutability of worker types. This cost of search is then decomposed into three components: unemployment … workers being more choosy. The resulting equilibrium is not efficient. Unemployment benefits can reduce the loss by serving as …