market patterns. Poor match quality among first jobs implies large fluctuations in unemployment due to a responsive job …-the-job search, generates a negative comovement between unemployment and vacancies. A significant job ladder, consistent with the … empirical wage dispersion, provides ample scope for the propagation of vacancies and unemployment …

implications for the unemployment dynamics. I propose a simple specification of bargaining friction by including bargaining wedges …, inefficient separations could be generated which would in turn induce inefficient unemployment. The existence of inefficient … unemployment due to bargaining friction could potentially explain the excessive fluctuation of unemployment observed in the data …

: the large differences in unemployment risk across worker age-groups over the business cycle. Our search model features a … large real effects through firms' labor policies. Our model predicts higher unemployment risk of younger workers relative to …

driving this result are pro-cyclical increases in the probability of skill loss during unemployment: these provide incentives …. Compositional changes in the unemployment pool, on the other hand, play a negligible role for empirically plausible rates of skill … depreciation, which imply a relatively slow process compared to the duration of unemployment spells …

bargaining cannot generate the observed volatility in unemployment and vacancy in response to reasonable labor productivity … unemployment and vacancy without resorting to an alternative wage setting mechanism. The monetary authority follows an interest …

unemployment rate. In the United States, the unemployment rate raises quickly and abruptly at the onset of contractions and … declines slowly and gradually during expansions. This pattern produces positive skewness in the distribution of unemployment … responsiveness of job vacancies to positive shocks in periods of high unemployment. I argue that the inability of the model to …

density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our …