labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching …This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which … of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages …

labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching …This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which … of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages …

labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching …This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which … of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages …

labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching …This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which … of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages …

little employment protection and low unemployment benefits, while the European model (generous benefits and higher duration …

' incentives to create jobs, increases unemployment, and lowers GDP. To quantify the effects of this novel channel, we extend the … counterfactual exercises. We find that the adverse effects of our mechanism on the economy's TFP, GDP, and unemployment are sizable. …

This paper develops a model of unemployment fluctuations. The model keeps the architecture of the Barro and Grossman … (1971) general disequilibrium model but replaces the disequilibrium framework on the labor and product markets by a matching … flexible to completely rigid. With some price rigidity, aggregate demand influences unemployment through a simple mechanism …

blends a matching framework with job rationing. In it, the arrival of new workers can raise the unemployment rate among local …Immigration is often blamed for increasing unemployment among local workers. However, standard models, such as the … neoclassical model and the Diamond-Mortensen-Pissarides matching model, inherently assume that immigrants are absorbed into the …

This article develops a model of unemployment fluctuations. The model keeps the architecture of the general …-disequilibrium model of Barro and Grossman (1971) but takes a matching approach to the labor and product markets instead of a … affects unemployment as follows. An increase in aggregate demand leads firms to find more customers. This reduces the idle …

contradiction between two influential theories. On one hand, in the standard search-matching theory with wage bargaining, hiring … and always gives rise to over-employment. In this paper, we try to reconcile the approaches. A simple matching model with … employment compared to the efficient allocation than in the standard search-matching model. …