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 …

Since the advent of Heterogeneous Agent New Keynesian (HANK) models, countercyclical unemployment risk has been deemed … an important amplification mechanism for business cycles shocks. Yet, the aggregate effects of such "unemployment fears … model. While unemployment fears can exert noticeable aggregate effects, we find their magnitude to depend importantly on the …

This paper provides evidence on the behavior of reservation wages over the spell of unemployment using high … to 24 weeks, we find that self‐reported reservation wages decline at a modest rate over the spell of unemployment, with … point estimates ranging from 0.05 to 0.14 percent per week of unemployment. The decline in reservation wages is driven …

unemployment will always have a voluntary component. Accumulated wealth in a family tends to increase the opportunity cost of job … search, more so in a world where job status is socially important. Thus prosperity and unemployment may go hand in hand … independent of the standard income effect. The paper shows that measured unemployment always may have a voluntary component. In …