The Great Recession, which was preceded by the financial crisis, resulted in higher unemployment and inequality. We …, tighter credit leads to lower output, lower number of vacancies, and higher directed-search unemployment. Where workers are …

I calculate unemployment multipliers of fiscal consolidation policies in a standard, closed-economy New Keynesian … percentage of family firms in the labor force. I find that fiscal austerity raises unemployment. Both at peak and cumulatively …, unemployment reacts least when the budget is consolidated by increasing the rate of value-added tax. At peak, the highest increase …

causes deficient aggregate demand and thereby unemployment in the presence of nominal wage stickiness attributable to union … wage setting. In this long-run stagnation, generous unemployment benefits reduce unemployment. Moreover, paradoxically …, unemployment declines if labor unions give more weight to nominal wage gains compared with employment increases …

We introduce an aggregate demand externality into the Mortensen-Pissarides model of equilibrium unemployment. Because … firms care about the demand for their products, an increase in unemployment lowers the incentives to post vacancies which … further increases unemployment. This positive feedback creates a coordination problem among firms and leads to multiple …

featured mainly declining unemployment rates. We develop a search and matching model with heterogeneous skills to explore the … role of structural and cyclical policies for this performance. Calibrating unemployment benefits to approximate legislation … before and after the reforms, we find a large reduction in unemployment and its duration, with the transition concluding …

, this allows the model to generate fluctuations of unemployment, vacancies, and labor productivity whose magnitudes are …