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 …

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 …

where workers apply for just one job exhibits unemployment and absence of wage dispersion; (ii) an equilibrium where workers … apply for two or for more (but not for all) jobs always exhibits wage dispersion and, typically, unemployment; (iii) the … equilibrium wage distribution with a higher vacancy-to-unemployment ratio first-order stochastically dominates the wage …

largely varies depending on demographic groups: it appears to be much larger for men than that for women and that the … bargaining power of women with young children is essentially zero …

largely varies depending on demographic groups: it appears to be much larger for men than that for women and that the … bargaining power of women with young children is essentially zero. -- Commuting ; search model ; simultaneous equations …

where workers apply for just one job exhibits unemployment and absence of wage dispersion; (ii) an equilibrium where workers … apply for two or for more (but not for all) jobs always exhibits wage dispersion and, typically, unemployment; (iii) the … equilibrium wage distribution with a higher vacancy-to-unemployment ratio first-order stochastically dominates the wage …

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

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 …