featured mainly declining unemployment rates. We develop a search and matching model with heterogeneous skills to explore the … destroyed is likely to have prevented strong increases in unemployment. -- German Hartz IV reforms ; search and matching … role of structural and cyclical policies for this performance. Calibrating unemployment benefits to approximate legislation …

Not only the level of aggregate unemployment but also the properties of its dynamics are an important topic in … macroeconomics and labor economics. Several models like e.g. matching models with endogenous job destruction explicitly predict an … asymmetric pattern in the evolution of unemployment, whereas linear models with Gaussian innovations preclude such dynamics. This …

In this paper, we investigate whether business cycles can imply sizable effects on average unemployment. First, using a … on unemployment: positive shocks reduce unemployment less than negative shocks increase it. For the observed process of … reproduce the volatility of the job finding rate. Moreover, the matching model embeds other non-linearities which alter the …

We extend the standard textbook search and matching model by introducing deep habits in consumption. The cyclical … fluctuations of vacancies and unemployment in our model can replicate those observed in the US data, with labour market tightness … for the new hires and the calibration is consistent with the estimated elasticity of unemployment to unemployment benefits …