. By stimulating labor demand, hiring subsidies reduce unemployment risk and precautionary savings. This increases the … equilibrium unemployment and incomplete markets. Quantitatively, I find that an increase in hiring subsidies reduces unemployment …

the impact of uncertainty shocks on unemployment dynamics. Using a vector autoregression approach, we show that … uncertainty shocks measured by stock market volatility have a significant impact on the U.S. unemployment rate. We then develop a …

This paper shows how uninsurable unemployment risk is crucial to qualitatively and quantitatively match macro responses … behaviors, triggering a fall in aggregate demand and supply. These precautionary behaviors increase the unemployment risk of the … imperfectly insured households, who strengthen precautionary saving. When the feedback loop between unemployment risk and …

We study how unemployment effects the over-indebtedness of households using the new European Household Finance and … to country specific results, the role of unemployment varies widely across countries. In Spain, France or Portugal, for … households plagued by overindebtedness increased by more than 10%, suggesting that another unemployment shock could have a major …