Ouvrard, Jean-François (contributor); … - 2006
unemployed workers, giving Europe a chance to get rid of its persistent mass
unemployment. On the other hand, pessimistic … worker and Ut that of an unemployed
worker at date t. We note at the worker’s probability to find a job, Wt the labor cost … substitution income for an unemployed worker, 1 − q
the probability for a worker to remain in the firm for the next period, and β …