This paper presents a framework to interpret movements in the Beveridge curve and analyze unemployment fluctuations. We … decompose the unemployment rate into three main components: (1) a component driven by changes in labor demand – movements along … driven by changes in the efficiency of matching unemployed workers to jobs. We find that cyclical movements in unemployment …

This paper develops a sufficient-statistic formula for the unemployment gap-the difference between the actual … unemployment rate and the efficient unemployment rate. While lowering unemployment puts more people into work, it forces firms to … post more vacancies and to devote more resources to recruiting. This unemployment-vacancy tradeoff, governed by the …

unemployment and employment, can evaluate many open vacancies simultaneously and choose to which they make an application. Business …, targeting aggregate time series. The model can generate large volatility in unemployment, vacancies, and worker flows across …

This paper analyses how labour market heterogeneity affects unemployment, productivity and business cycle dynamics that … skilled workers increases the natural rate of unemployment and reduces total factor productivity with long- run effects on the … Beveridge curves. Skill-specific labour market heterogeneity leads to a attening of the Phillips curve as wages and unemployment …