participation. A model that is calibrated to replicate the variability of unemployment and participation, and the negative … correlation of unemployment and GDP, implies an aggregate labor supply elasticity along the extensive margin of around 0.3 for men …

Existing models of equilibrium unemployment with endogenous labor market participation are complex, generate … procyclical unemployment rates and cannot match unemployment variability relative to GDP. We embed endogenous participation in a … variabilities but also generates strongly countercyclical unemployment rates. With some wage rigidity the model also matches …

This paper provides a critique of the "unemployment invariance hypothesis", according to which the behavior of the … labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity, and … equilibrating mechanisms to ensure unemployment invariance and that other markets may perform part of the equilibrating process as …

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 …

joint unemployment and vacancy dynamics. We show conditions for constrained efficiency and discuss important implications of …

empirical regularities that the conventional matching model cannot. -- Matching ; incentives ; adjustment costs ; unemployment …

effect of product market competition on unemployment rates, being substantial under collective bargaining and considerably … to a substantial increase in equilibrium unemployment rates from 5.5% to 8.9 % in the model economy. -- product market … competition ; European Unemployment Puzzle ; overhiring ; wage bargaining …