economy permanently operates below capacity due to both structural unemployment and underemployment. The latter is a direct … explain movements of unemployment and underemployment in opposite directions. Finally, we show that fluctuations in the total … employment gap under stagnation are primarily driven by fluctuations in underemployment instead of structural unemployment. Our …

the design of optimal unemployment insurance in an economy with unemployment as well as part-time unemployment. Part …-time unemployment provides income insurance and serves as a stepping stone to full-time jobs. Unemployment benefits for part …-timers increase the outflow from unemployment to part-time work but reduce the outflow from part-time work to fulltime employment. We …

recessions. First, we show that the consumption risk of short-time work is considerably smaller compared to unemployment using … frictions featuring an endogenous firing and short-time work decision. In recessions, short-time work reduces the unemployment …

unemployment. Labor market regulations, unemployment benefits, and high levels of public consumption in many European countries …

unemployment and wages in aggregate analysis. We do find, however, evidence of distributional effects when accounting for human …

-2019 period, we use Bayesian Model Averaging and quantile regression to assess notably the relevance of unemployment and earnings …. Moreover, one percentage point increase in the difference in the unemployment rate is associated with an increase in net …

This paper provides new estimates of Okun’s unemployment-output relationship in euro area countries between 1979 and … characterise the literature and that the responsiveness of output to unemployment is driven by idiosyncratic factors in both euro …

performance indicators (unemployment, long-term unemployment, employment, activity rate). Our results confirm that high taxes … increase unemployment, while active labour market policies tend to reduce it. We also show that stricter employment protection … market ; unemployment ; European Union ; labour market institutions …

with simulations. Two examples based on European unemployment and inflation series are used to illustrate the virtue of the …

surrounding the effects of rule-based monetary policy on unemployment dynamics in the euro area and the US. We employ a Bayesian … policy ; model uncertainty ; Bayesian model averaging ; unemployment gap ; Taylor rule …