counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important …

sluggish. Job creation and job destruction are negatively correlated. And the volatility of unemployment is much larger than in …

We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms …. Countries may differ with respect to size, geographical location, and labor market institutions. Contrary to the literature, our … single-sector perspective pays special attention to the role of income effects and shows that bad institutions in one country …