We offer a decomposition for the variance of the current unemployment rate that not only measures the contributions of …

two members. Households face unemployment risks but their members adjust their labor supplies to insure against … unemployment. We use the model to explain the cyclical properties of aggregate employment and participation. As in the US data, the … household against unemployment risks. …

unemployment in the country …

increase to 250 euros per month, the simulated unemployment rate increases by 0.4 percentage point in the short term and about … 0.6 percentage point in the long term. The youth unemployment rate (ages 15-24) is anticipated to increase by up to 1 ….1 percentage points in this scenario, a relatively large increase considering the already high levels of unemployment among this …