In recessions, unemployment increases despite the—perhaps counterintuitive—fact that thenumber of unemployed workers … finding jobs expands. On net, unemployment rises only becauseeven more workers lose their jobs. We propose a theory of … unemployment fluctuations resting onthis countercyclicality of gross flows from unemployment into employment. In recessions …

This paper analyzes the effect of Product Market Regulation (PMR) on unemployment in a search model with heterogeneous … rate of unemployment. We distinguish between PMR related to entry costs and PMR that generates recurrent fixed costs. We … find that: (i) higher entry costs raise the rate of unemployment mainly through our novel selection effect, (ii) higher …

Shimer (2005a) argues that the Mortensen-Pissarides equilibrium search model of unemployment explains only about 10% of …

This paper compares models used to explain OECD unemployment. The models suggest that the natural rate of unemployment …

unemployment and decrease old age unemployment. However, once we take the wage response into account, we find that firing costs … increase both youth and old age unemployment. This happens because unions react strategically, and respond to higher firing … increase their employment prospects. However, despite this cut youth unemployment still increases with firing costs. In the …

This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows …. We construct an intertemporal general equilibrium model with search unemployment and endogenous job turnover, and examine … the consequences of introducing an unemployment benefit, a firing cost and a downward wage rigidity. The model is able to …

The unemployment rise in EU countries has been particularly strong for low-skilled workers. This observation has often … types of workers and with search unemployment. The model is calibrated and simulated to examine the interactions between the … observed unemployment changes …

unemployment. We show that aggregate unemployment decreases for uneven technical change in the case of Cobb-Douglas production … leading to a rise in unemployment. Moreover, we identify polar cases when unemployment strongly decreases …

composition of the labor force, between-groups wage inequality and the level of unemployment. The main result is that a labor … labor force, there is higher unemployment among low-experience workers, they do not accumulate enough on-the-job human …

real wages and low unemployment result. With an intermediate view, i.e., when partial equilibrium effects within a sector … are taken into account, high real wages and unemployment result. If all general equilibrium effects are considered at once …, low real wages and low unemployment again result. The assumption that unions and employers' federations are not able to …