. We use a New Keynesian model with unemployment to predict the effects of different labor market institutions on …

average re-employment probabilities. Living in an area with high local unemployment reduces re-employment chances as does … somewhat if a worker is unemployed in an area with high overall unemployment. …

We build an analytically and computationally tractable stochastic equilibrium model of unemployment in heterogeneous … countercyclical unemployment, and is simultaneously consistent with procyclical reallocation, countercyclical separations and a … negatively-sloped Beveridge curve. Moreover, the model exhibits unemployment duration dependence, which (when calibrated to long …

average re-employment probabilities. Living in an area with high local unemployment reduces re-employment chances as does … somewhat if a worker is unemployed in an area with high overall unemployment. …

. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows …

The persistence of U.S. unemployment has risen with each of the last three recessions, raising the specter that future … shocks do not systematically lead to more persistent unemployment than monetary policy shocks, so these cannot explain the … rising persistence of unemployment. Second, monetary and fiscal policies can account for only part of the evolving …

wages. A one-point increase in the unemployment rate decreases wages of newly hired male workers by around 2.8% and by just …