We introduce skill decay during unemployment into Blanchard and Gali's (2008) New-Keynesian model with hiring frictions … and real-wage rigidity. Plausible values of quarterly skill decay and real-wage rigidity turn the long-run marginal cost-unemployment … relationship positive in a "European" labour market with little hiring but not in a fluid "American" one. If the marginal cost-unemployment …

, Germany, and the United Kingdom, we document striking similarities in spatial differences in unemployment, vacancies, job … quantitatively rationalizes why differences in job-separation rates have primary importance in inducing differences in unemployment … across space while changes in the job-finding rate are the main driver in unemployment fluctuations over the business cycle. …

We analyze changes in unemployment, marginal labor force attachment and participation in Canada and the U.S. Using two … complementary decompositions, we show the importance for the comparative evolution of aggregate unemployment of changes in the … marginally attached displaying behavior lying between unemployment and non-attachment. The three non-employment states are …

the Beveridge curve in Austria. We find empirical evidence to confirm that the increase in the unemployment rate in …

We analyze changes in unemployment, marginal labor force attachment and participation in Canada and the U.S.. Using two … complementary decompositions, we show the importance for the comparative evolution of aggregate unemployment of changes in the … marginally attached displaying behavior lying between unemployment and non-attachment. The three non-employment states are …

the Beveridge curve in Austria. We find empirical evidence to confirm that the increase in the unemployment rate in …

-Mortensen-Pissarides model. Log linearization under- states the mean and volatility of unemployment, but overstates the volatility of labor … market tightness and the magnitude of the unemployment-vacancy correlation. Log linearization also understates the impulse … responses in unemployment in recessions, but overstates the responses in the market tightness in booms. Finally, the second …

the Beveridge curve in Austria. We find empirical evidence to confirm that the increase in the unemployment rate in …