Standard search and matching models of equilibrium unemployment, once properly calibrated, can generate only a small … of the model (risk aversion, volatile wages during employment, and on-the-job search) and find that, in their simplest …

for our preferred measure of frictional wage inequality: the ratio of average wages to the reservation wage, or, the 'mean …

I propose a new search-and-matching model in which wage rigidity and volatile unemployment endogenously arise. The …-the-job search and replacement hiring into a long-lived jobs framework. The presence of replacement hiring (i) enhances unemployment … volatility by reducing crowding out of unemployed workers due to employed searchers and (ii) makes equilibrium wages less …

, Germany, and the United Kingdom, we document striking similarities in spatial differences in unemployment, vacancies, job … quantitatively rationalizes why differences in job-separation rates have primary importance in inducing differences in unemployment … across space while changes in the job-finding rate are the main driver in unemployment fluctuations over the business cycle. …

construct a general equilibrium model where workers' reservation wages and the maximum punishment acceptable before workers quit … an adverse signal, and establishing conditions under which equilibrium entails lowering wages (performance contracting …, that frictions (sand-in-the-wheels) may decrease unemployment and that the equilibrium is determined by two simple …

We use a novel data set on firm vacancies and job seekers from a Mexican government job placement service to analyze … whether changes in matching frictions can explain the large and persistent increase in Mexican unemployment after the 2008 … unemployment rate. Hence, these results suggest that changes in matching frictions cannot explain most of the increase in …

, Germany, and the United Kingdom, we document striking similarities in spatial differences in unemployment, vacancies, job … quantitatively rationalizes why differences in job-separation rates have primary importance in inducing differences in unemployment … across space while changes in the job-finding rate are the main driver in unemployment fluctuations over the business cycle. …

We exploit a policy discontinuity at U.S. state borders to identify the effects of unemployment insurance policies on … unemployment. Our estimates imply that most of the persistent increase in unemployment during the Great Recession can be accounted … for by the unprecedented extensions of unemployment benefit eligibility. In contrast to the existing recent literature …

We exploit a policy discontinuity at U.S. state borders to identify the effects of unemployment insurance policies on … unemployment. Our estimates imply that most of the persistent increase in unemployment during the Great Recession can be accounted … for by the unprecedented extensions of unemployment benefit eligibility. In contrast to the existing recent literature …

higher wages. This increases firms' incentives to post more vacancies, which makes unemployment volatile and sensitive to … aggregate shocks. The model is robust to two major criticisms of existing theories of sluggish wages and volatile unemployment …I propose a new mechanism for sluggish wages based on workers' noisy information about the state of the economy. Wages …