Ait Lahcen, Mohammed; Baughman, Garth; Buggenum, Hugo van - 2023
We study the nonlinearities present in a standard monetary labor search model modified to have two groups of workers … facing exogenous differences in the job finding and separation rates. We use our setting to study the racial unemployment gap … two groups both in the level and volatility of unemployment. We show that the racial unemployment gap is counter …