Evaluating the effects of fiscal and monetary policies on the unemployment duration in industrial countries

 We investigate the effects of fiscal and monetary policies on the conditional distribution of the unemployment duration in advanced countries to understand how the time of job searching reacts to the macroeconomic policies. We gather the data of four advanced countries, including the United States, Canada, France, and Australia over two last decades. Then, we apply the Bayesian quantile method to do the empirical analysis. We find some pieces of evidence that monetary and fiscal policies heterogeneously affect different parts of the distribution of unemployment duration. Our estimates show that government budget surplus is positively correlated with all quantiles of the unemployment duration. In addition, nominal interest rate is negatively associated with the lower parts of the distribution of the unemployment duration while this correlation is positive for high quantiles.