We distinguish and assess three fundamental views of the labor market regarding the movements in unemployment: (i) the … that all the short-run fluctuations automatically turn into long-run changes in the unemployment rate. We assert the … problems faced by these conceptions in explaining the diversity of labor market experiences across the OECD labor markets. We …

We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show …

We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show … that this increases output persistence in a similar vein as other models of labor market frictions. Furthermore, it is … demonstrated that quadratic labor adjustment costs imply a trade off between stabilizing output and stabilizing inflation. …