Carrillo-Tudela, Carlos; Visschers, Ludo - Departamento de Economía, Universidad Carlos III de Madrid - 2014
equilibrium model with heterogenous labor markets. In this model three different types of unemployment arise: search, rest and … model. We show that rest unemployment is the main driver of unemployment fluctuations over the business cycle and causes … realistically to the business cycle, creating substantial longer-term unemployment in downturns. Finally, rest unemployment also …