New data compel a new view of events in the labor market during a recession. Unemployment rises almost entirely because … finding from new data is that a large fraction of workers departing jobs move to new jobs without intervening unemployment. I … of the high magnitude actually observed. In the standard theory developed over the past two decades, the wage moves to …

unemployment spells versus an increase in their duration. After broadly reviewing the previous literature, we replicate and extend …One of the strongest trends in recent macroeconomic modeling of labor market fluctuations is to treat unemployment … Unemployment," i.e., the extent to which increased unemployment during a recession arises from an increase in the number of …

We introduce dynamic incentive contracts into a model of unemployment dynamics and present three results. First, wage … cyclicality from incentives does not dampen unemployment dynamics: the response of unemployment to shocks is first … cyclicality from bargaining dampens unemployment dynamics through the standard mechanism. Third, our calibrated model suggests 46 …

for γ-workers. During the Great Recession, excess unemployment for α-workers rose by little and was reabsorbed quickly …; unemployment for γ-workers rose by 20 percentage points and was not reabsorbed 4 years after its peak. We use a search … unemployment during the Great Recession. Our view is that several puzzling micro and macro phenomena about the labor market are …

The flow opportunity cost of moving from unemployment to employment consists of foregone public benefits and the … is procyclical and volatile over the business cycle. The estimated cyclicality implies far less unemployment volatility …

We develop a theory of labor markets with four features: search frictions, worker productivity shocks, wage rigidity …

information establishes that any consistent explanation for worksharing, layoffs, severance pay, quits and unemployment must focus …

This paper develops a framework for analyzing unemployment in terms of …distribution of the inflow Into unemployment are the primary determinant of …drive the recession. In contrast to normal unemployment, cyclical unemployment …

dynamics in the tradition of Mortensen and Pissarides (1994). Our estimates discern 5 distinct types. Most unemployment comes … from just two of those types. Low employment types frequently circle among unemployment, short-term jobs, and being out of … the labor market. Short-term jobs play a role in the job-finding process related to the role of unemployment. These are …