I build a novel model to study how uncertainty shocks to firm-level productivity affect unemployment through the financial … channel of incomplete labor contracts. My model can explain 90% of the increase in unemployment during the Great Recession … uncertainty is high, so they hire fewer workers and unemployment increases. The model’s performance in explaining unemployment …

Unemployment leads to large and persistent income losses for workers. Higher unemployment in the labor market therefore … perspectives. Using data from the Current Population Survey (CPS), I show that a 1 percentage point increase in unemployment rate … the welfare losses of workers due to higher unemployment in the labor market to older, retired households by reducing …

important source of uncertainty is the relationship between inflation and unemployment. This paper studies the optimal monetary … policy in the presence of uncertainty about the natural unemployment rate, the short-run inflation-unemployment tradeoff and …

, our welfare analysis of fiscal alternatives shows that the young prefer increases in unemployment transfers as this …

against idiosyncratic risk. We show that this heterogeneity implies wage rigidity relative to a complete insurance economy … volatility of vacancies and unemployment. This channel can be relevant if the lack of insurance is large enough so that the … earnings variance and persistence in the unemployment state that result in a large degree of self-insurance …

the impact of uncertainty shocks on unemployment dynamics. Using a vector autoregression approach, we show that … uncertainty shocks measured by stock market volatility have a significant impact on the U.S. unemployment rate. We then develop a …

partners in the marriage market and switch between employment and unemployment in the labor market. In the marriage market … labor market divorces triggered by unemployment has decreased significantly. …

, because matching frictions render idiosyncratic labor-market risk endogenous; the supply, because markups, adjustment costs …, instead, favors unemployment-centric policy. One- and two-agent alternatives can show unanimous disapproval of inflation …

looking at the expenditure response of workers to the change in unemployment risk measured at the occupational level. We find … that occupational unemployment risk does not have a large impact on consumption expenditure. However, despite investigating … multiple forms of occupational unemployment risk for multiple expenditure categories in two expenditure surveys (PSID, CEX), we …