This paper develops a theory characterizing the effects of fiscal policy on unemployment over the business cycle. The … theory is based on a model of equilibrium unemployment in which jobs are rationed in recessions. Fiscal policy in the form of … government spending on public-sector jobs reduces unemployment, especially during recessions: the fiscal multiplier …

growth affect the unemployment probability of individuals with varied skills in the United States. The paper goes beyond … between macroeconomic shocks and unemployment. Workers specialized in communication skills exhibit lower unemployment rates …, reduced unemployment volatility, and less sensitivity to macroeconomic fluctuations. …

same which knows more the precarious employment, the underemployment and the recurrent unemployment. Moreover, one observes …

. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows …

This paper illustrates why fiscal policy becomes more effective as unemployment rises in recessions. The theory is … based on the equilibrium unemployment model of Michaillat (forthcoming), in which jobs are rationed in recessions. Fiscal …; therefore fiscal policy reduces unemployment effectively. Formally the fiscal multiplier—the reduction in unemployment rate …

. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows …

cyclical movements of some key labor market variables such as the vacancy rate and the vacancy-unemployment ratio. Several …

. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows …