volatility of unemployment and labor market tightness in response to a positive technology shock compared to the model without on …Although New Keynesian models with labor market frictions found an increase in unemployment and a decrease in labor … market tightness in response to a positive technology shock (which appears to be in line with recent empirical findings), the …

variables and other aggregates. Three features distinguish our model from the standard model with Search And Matching (SAM …

-border risk-sharing is limited, giving a role to a federal unemployment-based transfer scheme. Member states control local labor … Monetary Union, we find notable welfare gains if the federal scheme's payouts take the member states' past unemployment level … as a reference point. Member states' control over policies other than unemployment benefits can limit generosity during …

-cycle migration. In this model unemployment arises from search and matching frictions. We endogenize migration via the unemployed …Recently migration patterns in the euro area changed markedly in response to increasing unemployment disparities. This … business-cycle related fluctuations in net migration flows and the crucial role of unemployment and vacancies in shaping …

-border risk-sharing is limited, giving a role to a federal unemployment-based transfer scheme. Member states control local labor … Monetary Union, we find notable welfare gains if the federal scheme's payouts take the member states' past unemployment level … as a reference point. Member states' control over policies other than unemployment benefits can limit generosity during …

We show that in microdata, as well as in a search and matching model with flexible wages for new hires, wage rigidities … of incumbent workers have substantial effects on separations and unemployment volatility. Allowing for an empirically … relevant degree of wage rigidities for incumbent workers drives unemployment volatility, as well as the volatility of vacancies …

, Germany, and the United Kingdom, we document striking similarities in spatial differences in unemployment, vacancies, job … quantitatively rationalizes why differences in job-separation rates have primary importance in inducing differences in unemployment … across space while changes in the job-finding rate are the main driver in unemployment fluctuations over the business cycle. …