%0 Journal Article
%T The Unemployment Volatility Puzzle: A Note on the Role of Reference Points
%A Vincent Boitier
%J Theoretical Economics Letters
%P 92-96
%@ 2162-2086
%D 2015
%I Scientific Research Publishing
%R 10.4236/tel.2015.51013
%X This theoretical note aims at studying the role of reference points in
generating unemployment </span><span style=\"font-family:Verdana;\">volatility. For this
purpose, I introduce the notion of reference points in a standard Mortensen-</span><span style=\"font-family:Verdana;\">Pissarides
model. I obtain two results. First, I find that the obtained model is similar
to the one found by Pissarides in 2009. Second, I show that the introduction of
reference points can increase significantly unemployment volatility through a
mechanism ид la Hagerdorn and Manovskii.
%K Reference Points
%K Unemployment Volatility
%K Job Matching
%K Sequential Bargaining
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=54024