In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment …

between the three core labor force states, employment, unemployment, and inactivity. The dynamics of these transitions depend …The aggregate average unemployment rate in a given country is essentially the result of individual workers' transitions … unemployment rates is more sensitive to cyclical behavior for certain demographic groups, specifically unskilled and young workers …

countries have experienced a steep increase in unemployment, employment in other developed economies has not fallen in parallel … with a significant decline in GDP. Our analysis shows that labor market institutions frequently used to study employment … performance can explain the development of unemployment in the situation of crisis in some clusters of countries much better than …

negative duration dependence of exit rates from unemployment. Our model has a number of novel testable implications. For …

, directly from employer to employer as well as indirectly via an unemployment spell. In addition they are more likely to change …

, directly from employer to employer as well as indirectly via an unemployment spell. In addition they are more likely to change …