We analyze the general equilibrium effects of countercyclical unemployment benefit policies. Our heterogenous …-agent model features costly job search with imperfect insurance of unemployment risk and individual savings. Our model predicts …: (1) the additional unemployment under a countercyclical policy relative to that under an acyclical policy to be a …

This paper investigates the impact of endogenous unemployment insurance (UI) extensions on the dynamics of unemployment … for the maximum UI duration to depend on unemployment and for UI benefits to depend on worker characteristics. UI … extensions have a large effect on long-term unemployment during the Great Recession via job search responses and a moderate …

This paper analyses how labour market heterogeneity affects unemployment, productivity and business cycle dynamics that … skilled workers increases the natural rate of unemployment and reduces total factor productivity with long- run effects on the … Beveridge curves. Skill-specific labour market heterogeneity leads to a attening of the Phillips curve as wages and unemployment …

In this paper, we show that underemployment and not necessarily high unemployment becomes the main measure of economic … and cost shocks can explain movements of unemployment and underemployment in opposite directions, while demand and supply … employment record and the absence of wage pressures despite low unemployment rates after the Great Recession …

We develop a multi-sectoral matching model to predict the impact of the lockdown on the US unemployment, considering … and business closures that hit the workers with the first level of education explains the abruptness of the unemployment …-crisis unemployment level could be reached in 2024 in a scenario with a double wave. In the same scenario, a calibration on French data …

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 …

economy permanently operates below capacity due to both structural unemployment and underemployment. The latter is a direct … demand and supply shocks are opposite to those of the standard case and result in a co-movement of unemployment and … explain movements of unemployment and underemployment in opposite directions. Finally, we show that fluctuations in the total …

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