firms can explain the relatively high level of unemployment amongstlower educated workers and the relatively strong … level of education can notexplain the stronger cyclicality of the unemployment rate for lower educatedworkers. We conclude …

interact and affect the evolution of unemployment rates and participation rates, the two main indicators of labour market … performance. Our analysis has two special features. First, apart from the two labour market states - employment and unemployment … that a shock to the net flow from unemployment to employment drive the unemployment rate and the participation rate in …