This paper develops a model of unemployment fluctuations. The model keeps the architecture of the Barro and Grossman … flexible to completely rigid. With some price rigidity, aggregate demand influences unemployment through a simple mechanism …: higher aggregate demand raises the probability that firms find customers, which reduces idle time for firms’ employees and …

Over the past several decades, the rate at which regular unemployment insurance recipients run out of benefits before … recipients exhausted their benefits; in 2007 (with a similar unemployment rate) 35.6 percent exhausted. This paper documents the … increase in the exhaustion rate, along with the parallel rise in long-term unemployment; examines the consequences; and reviews …

have greater effects in reducing local unemployment rates if the local economy is initially depressed than if the local … economy is booming. Demand shocks have greater effects on local wage rates if the local unemployment rate is initially low …

-term unemployment by linking unemployment insurance benefits to participation in labor market programs, and that this is a requirement U …