decline in the unemployment rate which is almost three times larger than that in a model with fixed labor force. For a … percentage points, results in a fall in the unemployment rate by 0.17 and 0.05 percentage point, respectively, while the labor … effective in countries where product and labor market regulations are high, unemployment benefits are small and labor force is …

What is the relative importance of hiring and separation in driving unemployment fluctuations? This paper presents a … framework to decompose the moments of unemployment and study the respective contributions of vacancy posting, a measure of firms …’ hiring efforts, and separation. Separation accounts for about 40% of unemployment's variance, compared to 60% for vacancy …

in favor of either workers or entrepreneurs, the system does not fully accomplish the transition and unemployment might …

unemployment of policies that may be used to reduce informality. We consider changes in product market regulation (PMR) and in two … unemployment simultaneously, indicating that there is not necessarily a tradeoff between informality and unemployment. The tradeoff … appears when fiscal policies are used, though. Moreover, the impacts of PMR on unemployment and on wages are larger under …

important feature brought about by labor market frictions is the connection between the interest rate and the unemployment rate …. Exogenous shocks (such as aging) leading to lower interest rates also imply lower equilibrium unemployment rates, because lower …

mark-ups. The cyclical fluctuations of vacancies and unemployment in our model can replicate those observed in the US data … of unemployment to unemployment benefits. Finally, we show that in contrast to models with exogenous mark-up shocks, the …