The recent financial crises, alongside a dramatic rise in unemployment on both sides of the Atlantic, suggest that … shock. Third, we present evidence coherent with the idea that more leveraged sectors experience larger employment volatility … in normal times deep capital markets lead to tight labor markets. After an adverse liquidity shock, firms that rely much …

recovered but unemployment lingered). This paper presents a model that captures these three facts. The key elements of the model … confidence shock. Lack-of-confidence shocks play a central role in generating jobless recoveries, for fundamental shocks, such as … its intended target for an extended period of time, rather than exacerbating the recession as conventional wisdom would …

The recent financial crises, alongside a dramatic rise in unemployment on both sides of the Atlantic, suggest that … shock. Third, we present evidence coherent with the idea that more leveraged sectors experience larger employment volatility … in normal times deep capital markets lead to tight labor markets. After an adverse liquidity shock, firms that rely much …

recovered but unemployment lingered). This paper presents a model that captures these three facts. The key elements of the model … confidence shock. Lack-of-confidence shocks play a central role in generating jobless recoveries, for fundamental shocks, such as … its intended target for an extended period of time, rather than exacerbating the recession as conventional wisdom would …

order to prevent layoffs and stabilize employment. Many OECD countries have used this policy in the Great Recession, for … efficient as the recession deepens. We disentangle discretionary short-time work from automatic stabilization in German data and …

prevent layoffs. Many OECD countries have used this policy in the Great Recession. This paper shows that the effects of short … in deep economic crises. The policy becomes more efficient as the recession deepens. In expansions, the effects are …