may be out of its unemployment equilibrium for quite a long time after a shock occurs.The novelty of the model is that it … increase in the pace of job creation and destruction may have substantial effects on employment and unemployment;the effects … takes explicitly account of the propagationof shocks through the various duration classes of unemployment andallows for …

unemployment. Significant asymmetries emerge. Lilien's dispersion index is significant only for relatively high levels of … unemployment and becomes insignificant for low levels suggesting that reallocation affects unemployment only when the latter is … high. More job reallocation is associated with higher unemployment. …