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 …

. 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 …

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

amplifies fluctuations in unemployment and results in excess unemployment volatility relative to the efficient allocation …. Recessions disproportionately affect lowproductivity workers, whose unemployment spells are inefficiently frequent and long. We … consider a COVID recession resulting from a negative demand shock and a surge in exogenous separations. Highproductivity …

This paper discusses various concepts of unemployment rate benchmarks that are frequently used by policymakers for … particular, we propose two broad categories of unemployment rate benchmarks: (1) a longer-run unemployment rate expected to … prevail after adjusting to business cycle shocks and (2) a stable-price unemployment rate tied to inflationary pressures. We …