Unemployment insurance and wage subsidies are key tools to support labor markets in recessions. We develop a multi …-sector search and matching model with on-the-job human capital accumulation to study labor market policy responses to sector …, including a lower job-finding rate in the latter. We use the model to evaluate unemployment insurance and wage subsidy policies …

correlated with inflation. While existing studies of monetary policy and unemployment only consider consumer money, we build a … greatly amplifies the effect of monetary policy on unemployment, and that an increase in inflation reduces the firm money …