rise in the unemployment rate, by about 3 percentage points, and income inequality during the pandemic. Our results show …

where aggregate shocks have a permanent effect on the unemployment rate. If agents' wealth decreases, the unemployment rate … increases for a potentially indefinite period. This makes unemployment rate dynamics path dependent as in Blanchard and Summers … (1987). I argue that this feature explains the persistence of the unemployment rate in the U.S. after the Great Recession …

Serbia) are characterized by some of the highest unemployment and low employment rates in Europe. We analyze the poor labor …

relationship. First, debt overhang impairs household consumption when negative shocks hit. Second, increases in household debt …

response of consumption to sovereign risk, which I document in the context of the Eurozone crisis. By explicitly separating the … default is likely, households anticipate its negative consequences and cut consumption for self-insurance reasons. Such … caused by default risk. More generally, sovereign risk exacerbates volatility in consumption over time and across agents …

unemployment. Key elements of the reforms were a drastic cut in benefits for the long-term unemployed and tighter job search and … reforms were associated with a fall in the earnings of workers returning to work from short-term unemployment relative to …

This paper asks how well Okun's Law fits short-run unemployment movements in the United States since 1948 and in twenty … the unemployment rate-varies substantially across countries. This variation is partly explained by idiosyncratic features …