labor markets. Upon a neutral shock, total unemployment decrease is two-staged: firstly with a reduction in unskilled …-specific unemployment ; human capital investment ; idiosyncratic shock ; skill substitution ; search and matching … investment. Idiosyncratic shock shifts the skilled labor share and changes tightness in both skilled and unskilled markets. Given …

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 …

market sorting, and aggregate shocks. In response to a positive productivity shock, incentives to sort increase …. 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 …

shock. Although the model generates a jobless recovery, its implications on unemployment duration are not entirely … consistent with the data. Therefore, this study considers its sectoral theory as promising, but does not claim that such theory …

A positive joint two-sector productivity shock causes Rybczynski (1955) and Stolper and Samuelson (1941) effects that …) challenging empirical finding that labour supply decreases upon impact of a positive productivity shock is reproduced, while …

An identical two-sector productivity shock causes Rybczynski (1955) and Stolper and Samuelson (1941) effects that …

(i.e. the negative correlation between unemployment and vacancies) and business cycle statistics jointly. This paper … builds upon the sectoral shock literature and combines its insights with the standard endogenous separation matching approach …