Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle …

determination. Our theory sheds new light on how unemployment can affect workers' labor market outcomes and wage determination … unemployment durations are likely to be followed by lower re-employment wages because a worker's beliefs about his job …-finding process deteriorate with unemployment duration. Moreover, our analysis provides a set of useful results on dynamic programming …

cycle fluctuations in employment and unemployment. They argue that it is likely that wages are not adjusted as regularly as …

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 …

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle …

overly long unemployment durations. We examine the infuence of previous wages on unemployment durations for workers after …

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle …

In this paper, we introduce two sources of unemployment in a two-factor general equilibrium model: search frictions and … fairness considerations. We find that a binding fair-wage constraint increases the unskilled unemployment rate and can at the … same time lead to a higher unemployment rate for skilled workers, as compared to an equilibrium where fairness …