. This critical value decreases with unemployment benefits and increases with workers' risk aversion. We also show that in …

idiosyncratic productivity shocks. This causes aggregate job turnover to rise, and thereby tends to raise unemployment. Second, this … turnover, unemployment, and welfare. I show that a 10 percentage point reduction in import tariffs combined with a 12 percent … reduction in the iceberg trade cost raises job turnover and unemployment (in steady state) by roughly 8 and 17 percent …