This paper studies the consequences of creative destruction on unemployment in a frictional labor market with on …-the-job search. For a benchmark calibration, a 1% increase in growth raises the unemployment rate by 1.72 percentage points in the … unemployment through more frequent job separations, in the presence of on-the-job search, creative destruction induces a direct …

model in Daveri and Maffezzoli (2000), where unemployment is generated by monopolistic unions, and calibrate it to reproduce …

paper were to be implemented, the average unemployment rate in the United States would fall from 5.7 to 4.7 percent. Also … and realistic responses of unemployment to changes in UI benefits. (Copyright: Elsevier) …

's skill level. We establish that, for young workers, unemployment incidence increases with skill in high-firing-tax countries … maintaining unemployment duration and the unemployment rate as decreasing functions of skill in all countries. Because of constant …

We show that equilibrium matching models imply that standard estimates of the matching function elasticities are … estimation method which, under certain structural assumptions about the process driving shocks to matching efficiency, is immune … from that bias. Application of our method to the estimation of a basic version of the matching function using aggregate U …

Shimer (2005a) argues that the textbook equilibrium search model of unemployment explains less than 10% of the … volatility in U.S. vacancies and unemployment when fluctuations are driven by productivity shocks. His paper as well as other … of the model can explain the magnitude of the empirical relationship between the vacancy-unemployment ratio and labor …

Shimer (2005) demonstrated that aggregate productivity shocks in a standard matching model cause fluctuations in key … labor market statistics---such as the job-finding rate, the vacancy/unemployment ratio, and the unemployment rate---that are … the value of their alternative use of time, constitute a disproportionate share of unemployment on average, and that share …

Propagation in equilibrium models of search unemployment is altered when vacancy costs require some external financing …

Why are financial crises associated with a sustained rise in unemployment? We develop a tractable model with frictions … unemployment. We then explore the micro-level impact by tracking the employment dynamics for firms of different sizes and ages. The …