ratio and the relatively generous unemployment benefit system. …

This paper analyses how labour market heterogeneity affects unemployment, productivity and business cycle dynamics that … skilled workers increases the natural rate of unemployment and reduces total factor productivity with long- run effects on the … Beveridge curves. Skill-specific labour market heterogeneity leads to a attening of the Phillips curve as wages and unemployment …

"unemployment volatility puzzle". We let new matches and continuing jobs differ by their productivity levels and by their … well behaving Beveridge curve, despite endogenous job destruction, and more volatile vacancies and unemployment, without a …

This paper develops a model with multiple steady states (low tax and unemployment rate versus high tax and unemployment … European unemployment rates observed during the seventies. The explanation given is that even if the unemployment rate would … job creation remains low making the return to a low unemployment rate impossible. The paper shows that in some cases …

, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are …

with a SVAR model by inspecting how unemployment responds to the state of the economy. We show that deviations from Okun …