of unemployment. We further find that allowing for on-the-job search markedly changes the quantitative predictions of the … DMP model regarding the impact of firing costs on unemployment and employment flows: ignoring on-the-job search leads one … to strongly underestimate the negative impact of firing costs on unemployment. -- firing costs ; on-the-job search …

idiosyncratic shocks, is countercyclical and thus raises the cyclical volatility of unemployment, closer to its empirical value; but … Beveridge curve up. OJS corrects this tendency and restores a vacancy-unemployment trade-off more in line with empirical …