the impact of uncertainty shocks on unemployment dynamics. Using a vector autoregression approach, we show that … uncertainty shocks measured by stock market volatility have a significant impact on the U.S. unemployment rate. We then develop a …

unemployment, this paper theoretically investigates the importance of labor market duality on labor market volatilities. The new … insight is that duality leads to a non-linear reaction of unemployment volatility for both supply and demand shocks. A … subsequent empirical panel data analysis confirms the model predictions. Uncovering the non-linearity in unemployment volatility …

business cycle. Second, a shock that moves the land price is capable of generating large volatility in unemployment. Our … facts observed in the data. First, the land price and the unemployment rate tend to move in opposite directions over the … estimation indicates that a 10 percent drop in the land price leads to a 0.34 percentage point increase in the unemployment rate …

Skill erosion during unemployment was of particular concern as unemployment duration increased in the Great Recession … unemployment pool's skill composition, and hence the output produced by other firms' new hires. As a consequence, job creation is …

There is little internal propagation of unemployment in standard search and matching models. When calibrated to the … high levels of worker flows observed empirically, unemployment in these models rapidly converges back to its steady state … level. We illustrate that even with high worker flows between employment and unemployment, slow movements in the composition …

This paper analyses how labour market heterogeneity affects unemployment, productivity and business cycle dynamics that … skilled workers increases the natural rate of unemployment and reduces total factor productivity with long- run effects on the … Beveridge curves. Skill-specific labour market heterogeneity leads to a attening of the Phillips curve as wages and unemployment …

unemployment. As such, our work contributes to resolving twolimitations of current general equilibrium labor-search theory: under … standard calibrations modelswithout OTJ search generate implausibly low unemployment volatility, while models with OTJsearch … generate unemployment volatility closer to the data but at the expense of implausibly lowconsumption and labor …

. Unemployed workers' skill losses generate multiple steady-state unemployment rates. When monetary policy is constrained by the … permanent unemployment trap. Since monetary policy is powerless to escape such traps ex post, it must avoid them ex ante. The …