In this paper, we argue that credit market imperfections impact not only the level of unemployment, but also its … steady-state unemployment, but also slow down the transitional dynamics. We then provide an empirical illustration based on a … persistence of unemployment. -- Credit markets ; labor markets ; unemployment ; credit constraints ; search frictions …

This paper introduces endogenous credit constraints in a search model of unemployment. These constraints generate …. Unemployed workers are hard to find jobs generating high and persistent unemployment …

economy permanently operates below capacity due to both structural unemployment and underemployment. The latter is a direct … demand and supply shocks are opposite to those of the standard case and result in a co-movement of unemployment and … explain movements of unemployment and underemployment in opposite directions. Finally, we show that fluctuations in the total …

probit model using 23 macroeconomic and financial sector variables.Traditional variables such as unemployment and inflation …

probit model using 23 macroeconomic and financial sector variables. Traditional variables such as unemployment and inflation …

estimated using 23 macroeconomic and financial sector indicators. The essay finds that traditional variables (eg unemployment …

probit model using 23 macroeconomic and financial sector variables. Traditional variables such as unemployment and inflation …