The divergence of unemployment rates between the United States and Europe coincided with a substantial acceleration in … change. The proposed framework offers a novel explanation for the observed divergence of unemployment rates across economies … adoption. The results of the paper challenge the popular, but controversial, view that blames generous unemployment insurance …

We extend the standard textbook search and matching model by introducing deep habits in consumption. The cyclical … fluctuations of vacancies and unemployment in our model can replicate those observed in the US data, with labour market tightness … for the new hires and the calibration is consistent with the estimated elasticity of unemployment to unemployment benefits …

) characterize responses of unemployment to productivity changes for a general matching technology; and (3) show how a matching … to fill vacancies, but search frictions prevent firms from instantly hiring available workers. Unemployment persists … unemployment responds to productivity changes depends on resources that can be allocated to job creation. Yet, this …

significantly contribute to the rise in unemployment during the Great Recession. I build a general equilibrium model that uses … significantly contribute to aggregate unemployment fluctuations. …

We show that the inability of a standardly-calibrated labor search-and-matching model to account for labor market …

unemployment across a sample of OECD countries. Using an incomplete markets variant of the fair wage real business cycle model …, increases in the gross replacement rate of public unemployment insurance are shown to increase the volatility of employment, and … which unemployment is endogenised in the model. …

unemployment to small structural shocks …

This paper develops a matching model of the labor market under wage rigidity when hiring decisions are irreversible … may have increased unemployment. It is shown that it is likely to be so if they are associated with an increase in the …

Technological unemployment is a situation when people are without work and seeking work because of innovative …

We study the steady state with involuntary unemployment and fiscal policy to realize full-employment in a situation … with technical progress. Under involuntary unemployment the nominal wage rate may decline. Then, the prices of the goods …