interact and affect the evolution of unemployment rates and participation rates, the two main indicators of labour market … performance. Our analysis has two special features. First, apart from the two labour market states – employment and unemployment … that a shock to the net flow from unemployment to employment drive the unemployment rate and the participation rate in …

firms are more cyclically sensitive to unemployment. Besides, the VAR impulse response analysis suggests that workers move …

evidence of large heterogeneities among demographic groups. Interestingly, unemployment rates in levels across demographic … groups are not necessarily aligned with the sensitivity of these demographic groups’ (un)employment and participation rates …