Wage rigidity is an important explanation for unemployment fluctuations. In benchmark models wages for new hires are … respond to rises in unemployment, but respond strongly to falls in unemployment. Job information is crucial for detecting …

We introduce dynamic incentive contracts into a model of unemployment dynamics and present three results. First, wage … cyclicality from incentives does not dampen unemployment dynamics: the response of unemployment to shocks is first … cyclicality from bargaining dampens unemployment dynamics through the standard mechanism. Third, our calibrated model suggests 46 …

% for a 1 pp decline in the unemployment rate. For large recessions, like the Great Recession, that implies a decline in the …

they joined the establishment from unemployment This is supportive of equal treatment. We also show that a four parameter … series properties and co-properties of real wages, output, and unemployment, in particular the asymmetric response of wages …

discriminate based on a year of entry to a firm, and develops an equilibrium model of wages and unemployment. We solve for the … dynamics of wages and unemployment under conditions of downward wage rigidity, where forward looking firms take into account … to match certain stylised labour market facts. -- Labour contracts ; business cycle ; unemployment ; equal treatment …