their unemployment rate rose less than the one of prime-age workers. This view is a myth: older workers are more sensitive …

Ljungqvist and Sargent (2017) (LS) show that unemployment fluctuations can be understood in terms of a quantity they … understanding unemployment fluctuations. We show how the LS framework can be adapted to incorporate risk premia. We derive an … show how to use properties of the artificial economy to deduce how risk premia affect unemployment dynamics in the original …

in their unemployment rate and not a decline in labour force participation rate. Policymakers should take account of …