. Alternatively, it is shown here how wage stickiness may bring unemployment fluctuations into a New-Keynesian model. Using a Bayesian … the two models and both provide a good empirical fit, with the crucial difference that our model delivers unemployment … fluctuations. Thus, second-moment statistics of the US rate of unemployment are replicated reasonably well in our proposed New …

employment and wage distribution under a frictional setting. I??review new developments in search theory and discuss the … theoretical results are mixed. There is no unique connection between unemployment and minimum wages, and the effect can be … generally leads to an increase in unemployment as well. In this case, a social planner faces a trade off between redistribution …

employment and unemployment, the analysis shows how the optimal policy depends on the rates of hiring and firing, and on the … unemployment benefits in optimal policy design. We calibrate the model and evaluate the effectiveness of employment vouchers in … reducing unemployment for a wide range of feasible parameters. …