the financial market, we address two prominent mechanism through which firms' financial constraints amplify unemployment … substantial decline in both unemployment and wages. Financial constraints therefore weaken the direct link between wage rigidity … and unemployment volatility. …

based on the behavior of individual wages and turnover. I find that a one percentage point increase in unemployment …

observed volatility of unemployment and vacancies extends beyond U.S. data to a set of OECD countries. We also argue that using …

Economists face difficulties explaining the strong cyclicality of US unemployment. This paper contributes both by … unemployment, and the results suggest an upper bound on how far they can go in explaining unemployment cyclicality. …