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 …

shocks to unemployment, but not after small changes. The result poses a challenge to theory, since most existing hysteresis …One of the stylized facts of unemployment is that shifts in its mean rate between decades and half-decades account for …-parametric density estimation techniques to identify the dates of infrequent changes in the mean of the unemployment rate series of 17 …

education groups, and the increase in unemployment at all levels of education. In contrast, in previous literature this type of … overeducation is key to understand the response of unemployment to the technology shock …

employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of …). Accordingly, the efficient unemployment rate is the geometric average of the unemployment and vacancy rates: u* = √uv. We compute …

ambiguity aversion substantially amplifies unemployment rate volatility. Second, we show that a part of the high value of … leisure required by the canonical DMP model to generate realistic unemployment rate volatility can arise from fitting a model …

There is little internal propagation of unemployment in standard search and matching models. When calibrated to the … high levels of worker flows observed empirically, unemployment in these models rapidly converges back to its steady state … level. We illustrate that even with high worker flows between employment and unemployment, slow movements in the composition …

employed, and (ii) in response to increasing unemployment rate, the propensity to become entrepreneurs increases for employed … entrepreneurship and unemployment with endogenous job destructions. Entry decision into entrepreneurship is affected by an … opportunistic effect and a separation effect, which is strengthened by surging unemployment risk in recessions. I show that the …

unemployment. I estimate a version of the MP model with wage rigidity and permanent shocks to match productivity. The model … generates sufficient volatility in unemployment, vacancies, job-finding and job-separation despite relatively low worker outside … estimation procedure finds the best fitting model, the model predicts too little variance in unemployment and too much variance …