A dominant trend in recent modeling of labor market fluctuations is to treat unemployment
inflows as acyclical. This trend has been encouraged by recent influential papers that stress …

The paper proposes a numerical solution method for general equilibrium models with a
continuum of heterogeneous agents that combines elements of projection and of …

In a business cycle model that incorporates a standard matching framework, employment
increases in response to news shocks, even though the wealth effect associated with the …

Propagation in equilibrium models of search unemployment is altered when vacancy costs
require some external financing on frictional credit markets. The easing of financing …

In middle-income countries, the informal sector often accounts for a substantial fraction of the
urban labor force. We develop a general equilibrium model with matching frictions in the …

We consider the dynamic relationship between product market entry regulation and
equilibrium unemployment. The main theoretical contribution is combining a job matching …

We model worker heterogeneity in the rents from being employed in a Diamond-Mortensen-
Pissarides model of matching and unemployment. We show that heterogeneity, reflecting …

We develop a theoretical model with labour market frictions, incomplete financial markets,
and with households which have two members. Households face unemployment risks, but …

Abstract Models of unemployment and monetary policy usually assume constant
participation. Incorporating a participation decision into a standard New Keynesian model …

This paper presents a framework to interpret movements in the Beveridge curve and analyze
unemployment fluctuations. We decompose the unemployment rate into three main …