This paper shows how uninsurable unemployment risk is crucial to qualitatively and quantitatively match macro responses … behaviors, triggering a fall in aggregate demand and supply. These precautionary behaviors increase the unemployment risk of the … imperfectly insured households, who strengthen precautionary saving. When the feedback loop between unemployment risk and …

We estimate the changes in US male labor market risk over the last three decades in a model of endogenous labor supply … a life-cycle model with search frictions, we show that the estimated changes in risk can account for 85 percent of the … increase in within group wage inequality. The welfare costs of rising risk are small. …

labor market and examines the implications of joint household decision-making for cyclical fluctuations in the unemployment …, and find that joint household decision-making contributes to the counter-cyclicality of women’s unemployment rate, but not …

We estimate the changes in US male labor market risk over the last three decades in a model of endogenous labor supply … a life-cycle model with search frictions, we show that the estimated changes in risk can account for 85 percent of the … increase in within group wage inequality. The welfare costs of rising risk are small …

country model in which people move to maximize expected utility. Wages are set by unions, and unemployment emerges as an … model in which wage setting does not depend on unemployment benefits and taxes. These effects are dampened by the … combination of risk averse consumers and inelastic housing supply …

This paper investigates the optimal retirement of an individual in the presence of involuntary unemployment risks and … involuntary unemployment risks and frictions in unemployment insurance markets. Using reasonably calibrated parameters, we observe … that high involuntary unemployment intensity and loading factors could be important explanations for the empirical findings …

endogenous firing as well as a short-time work decision. In recessions, short-time work reduces the unemployment risk of workers … replacement rate can be more effective compared to an increase of the unemployment benefit replacement rate. …

When the economy is in a liquidity trap and households have a precautionary motive to save against unemployment risk … unemployment risk and decline in demand. As a result, market incompleteness may alleviate contractions in output and inflation …

.S. experience reveals an elevated risk of large increases in unemployment when inflation or credit growth is high and when the … unemployment rate is low. Inflation was a significant contributor to unemployment risk in the 1970s and early 1980s, and … fluctuations in credit have contributed importantly to unemployment risk since the 1980s. Fluctuations in upside risk to …