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 …

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. …

rule. The model is used to address the "Shimer puzzle" related to the low volatility of the unemployment rate relative to … unemployment rate to changes in productivity and in particular to changes in the information structure …