-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 …

search leads to additional formal job interviews after a few months in unemployment. … the unemployment spell. This is confirmed by complementary analysis with individual survey data suggesting that online job …