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

part-time workers. A one percentage point increase in the unemployment rate led to an average decline in real hourly wages … of new hires are not helpful for understanding the behaviour of unemployment over the business cycle. …

in their unemployment rate and not a decline in labour force participation rate. Policymakers should take account of …

It has been noted that the search and matching model cannot account for the observed unemployment fluctuations. Gertler …

We show in a union-bargaining model that a decrease in the unemployment benefit level increases not only equilibrium …-term wage contracts lead to highter expected real wages and hence higher expected unemployment than short-term contracts …

This paper points out an empirical failing of real business cycle models in which unemployment is endogenized through a … matching function. One can easily choose a calibration to make the cyclical fluctuation in unemployment as large in the model … as it is in the data, or to make the response of unemployment to a change in the unemployment benefit as small in the …

downward rigidity, and magnifying the response of unemployment to negative shocks. We also consider layoffs and show that for a …