Typical measures of wages, such as average hourly earnings, fail to capture cyclicality in the effective cost of labor … in the presence of (i) cyclical fluctuations in the quality of worker-firm matches, or (ii) wages being smoothed within … recession affects user cost: It lowers the new-hire wage; it lowers wages going forward in the match; but it also results in …

We analyze labor market flows and unemployment in the Czech Republic (CR), Slovakia and Poland over the period 2004 … than in the U.S. /UK. Yet, compared to neighboring countries, the CR suffers more from unemployment rigidity, as evidenced … most convincingly by a relatively weakernet flowof workers from unemployment to employment. This net flow alone would cut …

. This model yields a simple relationshipbetween (i) the unemployment rate, (ii) the value of non-market time, and (iii … andallow for measurement error. The estimated wage dispersion and mismatch for theUS is consistent with an unemployment rate of …

We build an analytically and computationally tractable stochastic equilibrium model of unemployment in heterogeneous … countercyclical unemployment, and is simultaneously consistent with procyclical reallocation, countercyclical separations and a … negatively-sloped Beveridge curve. Moreover, the model exhibits unemployment duration dependence, which (when calibrated to long …

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 … fraction of the non-employed who are unemployed and in the fraction of the unemployed who 'want work'. Using microdata we study …

-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 …