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 …

We build an analytically and computationally tractable stochastic equilibrium model of unemployment in heterogeneous … countercyclical unemployment, and is simultaneously consistent with procyclical reallocation, countercyclical separations and a … negatively-sloped Beveridge curve. Moreover, the model exhibits unemployment duration dependence, which (when calibrated to long …

unemployment, even after controlling for the endogeneity of court activity. The results have potentially important policy …

density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our …

, causing both unemployment and excessive value added in exports. Moreover, excessive wages induce too much outsourcing of …