serious pitfalls. Three canonical variates used in the literature – the minimum unemployment rate during a worker's time at … the firm (min u), the unemployment rate at the start of her tenure (Su) and the current unemployment rate interacted with … because a differential wage response to unemployment of new hires and incumbents will appear under both equal treatment and …

with less perverse effect on unemployment. Time inconsistency is more likely due to lack of credibility than to the short …

Wages are only mildly cyclical, implying that shocks to labour demand have a larger short-run impact on unemployment …

peak at 12 months. 5) The probability of a wage change is positively correlated with the unemployment rate and with the …

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle …

adverse labor market conditions. Unlike existing coordination-friction economies with fixed search intensity, the model can … account for the empirical relation between the job-finding rate and the vacancy-unemployment ratio, provided that search costs …

In this paper, we argue that credit market imperfections impact not only the level of unemployment, but also its … steady-state unemployment, but also slow down the transitional dynamics. We then provide an empirical illustration based on a … persistence of unemployment …