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

Although New Keynesian models with labor market frictions found an increase in unemployment and a decrease in labor … volatilities of unemployment and labor market tightness are not as high as their empirical counterparts. This calls for the … volatility of unemployment and labor market tightness in response to a positive technology shock compared to the model without on …

higher wages. This increases firms' incentives to post more vacancies, which makes unemployment volatile and sensitive to … aggregate shocks. The model is robust to two major criticisms of existing theories of sluggish wages and volatile unemployment … explains 70% of unemployment volatility …

unemployment, this paper theoretically investigates the importance of labor market duality on labor market volatilities. The new … insight is that duality leads to a non-linear reaction of unemployment volatility for both supply and demand shocks. A … subsequent empirical panel data analysis confirms the model predictions. Uncovering the non-linearity in unemployment volatility …

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

Establishment entry and exit is strongly correlated with output and unemployment. This paper examines how these … output and unemployment, data-consistent counter-cyclical endogenous uncertainty and a 55% higher welfare cost than the model …