A search-theoretic general equilibrium model of frictional unemployment is shown to be consistent with some of the key … regularities of unemployment over the business cycle. In the model the return to a job moves stochastically. Agents can choose … unemployment …

This paper explores the determinants of equilibrium unemployment within the search and matching framework. Using … structural estimation and simulation we demonstrate the usefulness of this model in accounting for the recent experience, shared … by many OECD economies, of high and persistent unemployment. The main finding is that the rise in unemployment can be …