Labor market frictions are not the only possible factor responsible for high unemployment. Credit market imperfections … European and US unemployment differ so much when labor markets have become more similar at the margin in Europe and the US. To …

A search and matching model, when calibrated to the mean and volatility of unemployment in the postwar sample, can … labor market conditions, along with the congestion externality from matching frictions, cause the unemployment rate to rise … potentially explain the unemployment crisis in the Great Depression. The limited responses of wages from credible bargaining to …

Labor market frictions are not the only possible factor responsible for high unemployment. Credit market imperfections … European and US unemployment differ so much when labor markets have become more similar at the margin in Europe and the US. To …