Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle …

In this paper, we argue that credit market imperfections impact not only the level of unemployment, but also its … steady-state unemployment, but also slow down the transitional dynamics. We then provide an empirical illustration based on a … persistence of unemployment. -- Credit markets ; labor markets ; unemployment ; credit constraints ; search frictions …

money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal … monetary growth rate decreases with the workers' bargaining power, the level of unemployment benefits and the payroll tax rate …. -- inflation ; unemployment ; search-matching ; Friedman rule …

predictions of the model change very little, but the welfare costs of unemployment are much larger because unemployment risk is … distributed unequally across workers. As a result, optimal unemployment insurance may be higher and welfare is lower if hiring is … selective. -- labor market models ; welfare ; optimal unemployment insurance …

suggest that a more progressive tax schedule reduces the unemployment rate and increases the employment rate. These findings …

We investigate unemployment due to mismatch in the US over the past three decades. We propose an accounting framework … that allows us to estimate the overall amount of mismatch unemployment as well as the contribution of the frictions that … caused the mismatch. Mismatch is quantitatively important for unemployment and the cyclical behavior of mismatch unemployment …