relative wage and unemployment differentials for various labour market defining characteristics. A simultaneous increase in the … relative wage and the unemployment likelihood is defined as a relative wage rigidity dynamic for a labour market characteristic …

unemployment entry, optimism decreases job finding by about 8%. This effect weakens over the unemployment spell and eventually … switches sign after about 8 months of unemployment. From then onward, optimism prevents un- employed individuals from becoming … discouraged and thus increases search. On average, optimism increases the duration of unemployment by about 6.5%. …

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. …

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