to fill vacancies, but search frictions prevent firms from instantly hiring available workers. Unemployment persists … unemployment responds to productivity changes depends on resources that can be allocated to job creation. Yet, this …) characterize responses of unemployment to productivity changes for a general matching technology; and (3) show how a matching …

We propose that the natural rate of unemployment has an active role in the business cycle, in contrast to the … Phillips-curve framework of low---often extremely low---response of inflation to unemployment could be the result of fairly … most Phillips-curve studies, that conclude that inflation has little relation to unemployment. We suggest that the flat …

(1983-2009). We show that, until the early 2000s, close to 60% of changes in the unemployment rate are due to changes in the …

In recessions, unemployment increases despite the - perhaps counterintuitive - fact that the number of unemployed … workers finding jobs expands. On net, unemployment rises only because even more workers lose their jobs. We propose a theory … of unemployment fluctuations resting on this countercyclicality of gross flows from unemployment into employment. In …

little employment protection and low unemployment benefits, while the European model (generous benefits and higher duration …

business cycle facts. -- business cycle ; search frictions ; skill specic unemployment ; skill substitutability …

-cycle-frequency fluctuations in unemployment and job vacancies, given shocks of a plausible magnitude. We use data on the cost of vacancy creation …