increased flow into unemployment in a recession is mainly due to reduced hirings, and hence lower job-to-job transitions, rather …

for only a small portion of the fluctuations in unemployment and vacancies (Shimer (2005a)). In this paper, the author … vintages of entrants are able to account for fluctuations in unemployment and vacancies and that, in this environment, specific …

Shimer (2005a) argues that the Mortensen-Pissarides equilibrium search model of unemployment explains only about 10% of …

-wanted ads and an unemployment subsidy, is highly contractionary. However, it leads to large welfare gains. The policy also plays … ; unemployment ; business cycles …-wanted ads and an unemployment subsidy, is highly contractionary. However, it leads to large welfare gains. The policy also plays …

market patterns. Poor match quality among first jobs implies large fluctuations in unemployment due to a responsive job …-the-job search, generates a negative comovement between unemployment and vacancies. A significant job ladder, consistent with the … empirical wage dispersion, provides ample scope for the propagation of vacancies and unemployment …

properties of employment and unemployment equilibrium. Second, it applies the model to the study of employment fluctuations and … to the explanation of differences in unemployment rates in industrialized countries. The search and matching model is … unemployment and of jobs out of the market (the ‘job destruction’ flow). Steady-state equilibrium is at the point where the two …

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