unemployment in two largest economic regions in the world - the United States (US) and the Euro area (EA). For this purpose we … deploy Bayesian Markov-switching structural vector autoregressive (MS-SVAR) model identified via heteroskedasticity. In … addition to local effects we find foreign uncertainty shocks influence the Euro area but not the US unemployment. Moreover we …

density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our …

workers’ outside options. We document the negative selection into self-employment when workers enter from unemployment, and … contract out of unemployment. These facts call for a revision of active labor market policies in place …

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

macro-economic conditions in the form of regional unemployment rates. The results from our panel data models, several of … downturn, with an approximately 0.7 percentage point increase for each one percentage point rise in the unemployment rate … percentage point increase in the regional unemployment rate leading to an up to 0.8 percent decrease in consumption. …