are flexible, the standard deviation of unemployment in a model with rigid wages for incumbent workers (only) matches the …

are flexible, the standard deviation of unemployment in a model with rigid wages for incumbent workers (only) matches the …

unemployment across a sample of OECD countries. Using an incomplete markets variant of the fair wage real business cycle model …, increases in the gross replacement rate of public unemployment insurance are shown to increase the volatility of employment, and … which unemployment is endogenised in the model. …

single contract type. Calibrating our model to Spain, we find that unemployment fluctuates 21% more under duality than it … average unemployment rate.In our setup, employment grows gradually in booms, due to matching frictions, whereas the onset of a … the dual economy, and therefore decreases volatility. Unfortunately, it also raises unemployment; to avoid this …

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle …

cycle fluctuations in employment and unemployment. They argue that it is likely that wages are not adjusted as regularly as …

of incumbent workers have substantial effects on separations and unemployment volatility. Allowing for an empirically … relevant degree of wage rigidities for incumbent workers drives unemployment volatility, as well as the volatility of vacancies …

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle …

joint unemployment and vacancy dynamics. We show conditions for constrained efficiency and discuss important implications of …