This study demonstrates that nonlinearities, coupled with worker heterogeneity, make it possible to reconcile the … Diamond–Mortensen–Pissarides model with the labor market dynamics observed in the United States. Nonlinearities, induced by … low-paid workers' submarkets. The model fits the job finding, job separation, and unemployment rates well. It also …

We develop a multi-sectoral matching model to predict the impact of the lockdown on the US unemployment, considering … and business closures that hit the workers with the first level of education explains the abruptness of the unemployment …-crisis unemployment level could be reached in 2024 in a scenario with a double wave. In the same scenario, a calibration on French data …

In this paper, we quantify the contribution of labor market reforms to unemployment dynamics in nine OECD countries … dynamic stochastic search-matching model with heterogeneous workers, where aggregate shocks to productivity fuel up the cycle … the heterogeneous-worker mechanism proposed by Robin (2011) to explain unemployment volatility by productivity shocks …

This study demonstrates that nonlinearities, coupled with worker heterogeneity, make it possible to reconcile the … Diamond Mortensen Pissarides model with the labor market dynamics observed in the United States. Nonlinearities, induced by … low-paid workers' submarkets. The model fits the job finding, job separation, and unemployment rates well. It also …

I study a dynamic search-matching model with two-sided heterogeneity, a production complementarity that induces labor …. The distribution of unemployment worker types adjusts slowly, which amplifies job creation in the short run. In the long … run, falling unemployment curtails the firms' vacancy posting. The model closely matches time-series moments from U …

restructuring of the Federal Employment Agency in Germany (Hartz III labor market reform) for aggregate matching and unemployment …Our paper analyzes the role of public employment agencies in job matching, in particular the effects of the … Employment Agency did not contribute to the decline in unemployment in Germany. By contrast, improved activation of unemployed …

-Mortensen-Pissarides (DMP) search and matching model. Ex-ante heterogeneity and sorting have important implications for the dynamic properties … market. Additionally, endogenous matching sets fluctuate in response to shocks and amplify job-creation. Using a standard …, the firms' matching sets are wider in equilibrium than the workers' matching sets and fluctuate more in response to shocks. …

, 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. …

We examine the optimal labor market-policy mix over the business cycle. In a search and matching model with risk …- cancy subsidy, a layoff tax and unemployment benefits. We derive analytical expressions for the optimal setting of each of … replacement rate of unemployment insurance should all rise in recessions. We find this confirmed in a calibration targeted to the …