11%, but price permanent worker differences, a large contributor (32%) to variations in wages. A large share of the …

recovered but unemployment lingered). This paper presents a model that captures these three facts. The key elements of the model …

We propose a novel theory of self-fulfilling unemployment fluctuations. According to this theory, a firm hiring an …

The flow opportunity cost of moving from unemployment to employment consists of foregone public benefits and the … is procyclical and volatile over the business cycle. The estimated cyclicality implies far less unemployment volatility …