We study the nonlinearities present in a standard monetary labor search model modified to have two groups of workers … facing exogenous differences in the job finding and separation rates. We use our setting to study the racial unemployment gap … two groups both in the level and volatility of unemployment. We show that the racial unemployment gap is counter …

not the case. Although unemployment is low, the labor market is not 'tight'. On the contrary, we show that what matters …

We propose that the natural rate of unemployment has an active role in the business cycle, in contrast to the … Phillips-curve framework of low - often extremely low - response of inflation to unemployment could be the result of fairly … most Phillips-curve studies, that conclude that inflation has little relation to unemployment. We suggest that the flat …

money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal … monetary growth rate decreases with the workers' bargaining power, the level of unemployment benefits and the payroll tax rate. …

This paper shows how uninsurable unemployment risk is crucial to qualitatively and quantitatively match macro responses … deliver these effects. A heterogeneous-agent framework with search and matching frictions and Calvo pricing allows us to … behaviors, triggering a fall in aggregate demand and supply. These precautionary behaviors increase the unemployment risk of the …

By developing a job search model with college degree as a noisy signal, this paper analyzes the underlying mechanism of … values of ex ante skilled workforce and vacancies over unskilled counterparts, which triggers the vicious cycle of degree …

separation rate, and vacancies to monetary policy shocks. I develop a general equilibrium model that can account for the large … and persistent responses of vacancies, the job finding rate, the smaller but distinct response of the separation rate, and … rigidities. Special attention is paid to the role of different propagation mechanisms and the impact of search frictions on …

This paper explores the interrelation between the degree of unemployment persistence and the unemployment … unemployment and making unemployment less persistent, the less effective will be the growth-promoting supply-side policies (such as … training schemes) in reducing unemployment. …

This paper studies the impact of informality on the long-run relationship between inflation and unemployment in … money and credit coexist. An increase in inflation affects unemployment through two channels: the matching channel and the … unemployment. On the other hand, the lower impact of inflation on formal transactions where credit is partially available shifts …

This paper analyzes the relationship between unemployment and wage inflation for 10 of the euro area countries. The … combination of low wage inflation and high unemployment in Europe is usually attributed to a rise in the natural rate of … unemployment. Using a panel data approach, this paper models directly the specific structural determinants of the natural rate of …