According to search-matching theory, the Beveridge curve slopes downward because vacancies are filled more quickly when … unemployment is high. Using monthly panel data for local labour markets in Sweden we find no (or only weak) evidence that high … unemployment makes it easier to fill vacancies. Instead, there are few vacancies when unemployment is high because there is a low …

. In our calibration, this allows the model to generate fluctuations of unemployment, vacancies, and job-to-job transitions …

, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are …

, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are lose …

are flexible, the standard deviation of unemployment in a model with rigid wages for incumbent workers (only) matches the …

are flexible, the standard deviation of unemployment in a model with rigid wages for incumbent workers (only) matches the …

), we establish that the unemployment rate, the job separation rate, and the job finding rate exhibit a larger response to … of the state dependence in the unemployment rate, 76 percent for the separation rate and 36 percent for the job finding …

. The distribution of unemployment worker types adjusts slowly, which amplifies job creation in the short run. In the long … run, falling unemployment curtails the firms' vacancy posting. The model closely matches time-series moments from U …