This paper is concerned with social interactions and their importance for unemployment. A theoretical model is … specified in which the social and psychological costs of unemployment depend upon the unemployment level. The theoretical … analysis reveals social multiplier effects, and shows that multiple unemployment equilibria may emerge. Data on all 20- to 24 …

Wages are only mildly cyclical, implying that shocks to labour demand have a larger short-run impact on unemployment …

density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our …