Labor market frictions are not the only possible factor responsible for high unemployment. Credit market imperfections …. This paper shows that labor and credit market imperfections interact in a complementary way - which may explain why … European and US unemployment differ so much when labor markets have become more similar at the margin in Europe and the US. To …

In the last decades, the OECD labor markets faced important labor supply changes with the arrival of women and the … composition of the labor force, between-groups wage inequality and the level of unemployment. The main result is that a labor … market with wage rigidities may not recover from such a temporary labor supply shock: with a younger and less experienced …