in their unemployment rate and not a decline in labour force participation rate. Policymakers should take account of …

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 … unemployment is above average the gap increases by 0.6pp more than when aggregate unemployment is below average. In terms of policy …

This paper analyzes the effect of monetary policy shock on the unemployment rate of different racial groups in the US … is effective in reducing the racial unemployment gap, in particular between Whites and Blacks and during economic booms …