market improved from 2010 to 2014. We find that a 1 percentage point reduction in the local unemployment rate is associated …

labor markets. Upon a neutral shock, total unemployment decrease is two-staged: firstly with a reduction in unskilled … unemployment, and then due to a sharp decline of skilled unemployment when skill substitution dominates. A higher elasticity of …-specific unemployment ; human capital investment ; idiosyncratic shock ; skill substitution ; search and matching …

facts. -- sorting ; unemployment ; business cycles ; search-matching ; vacancies …

driving this result are pro-cyclical increases in the probability of skill loss during unemployment: these provide incentives …. Compositional changes in the unemployment pool, on the other hand, play a negligible role for empirically plausible rates of skill … depreciation, which imply a relatively slow process compared to the duration of unemployment spells …

. The distribution of unemployment worker types adjusts slowly, which amplifies job creation in the short run. In the long … run, falling unemployment curtails the firms' vacancy posting. The model closely matches time-series moments from U …

shock. Although the model generates a jobless recovery, its implications on unemployment duration are not entirely …

earnings losses for young workers generated by unemployment: unemployment represents time forgone in terms of human capital … downturn, as documented in the empirical literature. At the aggregate level, the framework delivers youth unemployment rates … that are higher and more sensitive to fluctuations in aggregate productivity than total unemployment rates. Additionally …

density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our …