Differences in labour market institutions and regulations between countries of the monetary union can cause divergent responses even to a common shock. We augment a multi-country model of the euro area with search and matching framework that differs across Ricardian and hand-to-mouth households....

Migration interacts with the domestic labour market through the increase in labour supply from immigration when labour market conditions improve and labour market tightness increases. Lozej studies the amplification mechanism that arises when there are search frictions, as it becomes more...