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 …

joint unemployment and vacancy dynamics. We show conditions for constrained efficiency and discuss important implications of …

joint unemployment and vacancy dynamics. We show conditions for constrained efficiency and discuss important implications of …

joint unemployment and vacancy dynamics. We show conditions for constrained efficiency and discuss important implications of …

Countercyclical unemployment benefit extensions in the United States act as a propagation mechanism, contributing to … both the high persistence of unemployment and its weak correlation with productivity. We show this by modifying an … otherwise standard frictional model of the labor market to incorporate a stochastic and state-dependent process for unemployment …

unemployment and a positively-sloped Beveridge curve. This paper presents a calibrated model which succeeds at generating … countercyclical unemployment and a negatively-sloped Beveridge curve despite the presence of a participation margin. …

in the vacancy-unemployment ratio without ad hoc assumptions of wage rigidity. This paper presents a mechanism of such … economy, and the vacancy-unemployment ratio experiences large cyclical fluctuations. …