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 …

A labor matching model with nominal rigidities can match short-run movements in labor's share with some success …. -- Unemployment ; labor market search ; job flows ; labor share ; inflation ; productivity shocks ; monetary shocks …