links both the cyclical fluctuations and the mean level of unemployment to the aggregate business cycle risk. The key result … of the paper is that business cycles are costly for all consumers, regardless of their wealth, yet that unemployment … fluctuations themselves are not the source of these costs. Rather fluctuations over the cycle induce higher average unemployment …

cycle dynamics of separation and job finding rates and to quantify their contributions to overall unemployment variability …. Cyclical changes in the separation rate lead those of unemployment, while the job finding rate and unemployment move … contemporaneously. Fluctuations in the separation rate explain between 40 and 50 percent of fluctuations in unemployment, depending on …

market states, the unemployment rate, and the labor force participation rate, while using values of elasticities consistent …

for only a small portion of the fluctuations in unemployment and vacancies (Shimer (2005a)). In this paper, the author … vintages of entrants are able to account for fluctuations in unemployment and vacancies and that, in this environment, specific …

unemployment over the business cycle, it implies a far too strong rise of the unemployment rate when unemployment benefits rise … of unemployment but at the same time implies a reasonable elasticity of unemployment with respect to benefits …

the business cycle features of job flows, worker flows between employment and unemployment, and job-to-job transitions …. The calibrated model successfully replicates (i) countercyclical worker flows between employment and unemployment, (ii …. The cyclical properties of worker flows between employment and unemployment differ from those of job flows, partly because …

worker flows and job flow simultaneously. In particular, the model correctly predicts that hires from unemployment move … flow that does not go through unemployment but is part of job creation, for which pro-cyclicality of the job finding rate … dominates its cyclicality. The authors also show that the model generates large volatilities of unemployment and vacancies when …

applications, I first show that firm wages dampen wage variation over the business cycle, amplifying that in unemployment, with …