We exploit a policy discontinuity at U.S. state borders to identify the effects of unemployment insurance policies on … unemployment. Our estimates imply that most of the persistent increase in unemployment during the Great Recession can be accounted … for by the unprecedented extensions of unemployment benefit eligibility. In contrast to the existing recent literature …

the financial market, we address two prominent mechanism through which firms' financial constraints amplify unemployment … substantial decline in both unemployment and wages. Financial constraints therefore weaken the direct link between wage rigidity … and unemployment volatility. …

We embed human capital-based endogenous growth into a New-Keynesian model with search and matching frictions in the … labor market and skill obsolescence from long-term unemployment. The model can account for key features of the Great … aggregate demand raises unemployment and the training costs associated with skill obsolescence. Lower employment hinders …

This paper shows that a search and matching model with idiosyncratic training cost shocks can explain the asymmetric … movement of the job-finding rate over the business cycle and the decline of matching efficiency in recessions. Large negative … tightness. Our model explains a large fraction of the matching efficiency decline during the Great Recession and generates state …