by investments in R&D performed in the high-wage sector. Unemployment is determined by the costs and benefits of waiting … for a high-paid job. The wage structure, growth, and unemployment are shown to depend on the way effort is extracted. …

local labour market is in close proximity of other labour markets, a local shock that increases unemployment may not lead to … lower pay rates if employers fear outward migration of their workers. Hence, the unemployment elasticity of pay will be …

. This model yields a simple relationshipbetween (i) the unemployment rate, (ii) the value of non-market time, and (iii … andallow for measurement error. The estimated wage dispersion and mismatch for theUS is consistent with an unemployment rate of …

In the past decades several features of U.S. unemployment dynamics have been investigated empirically. The original … focus of research was on the duration of unemployment. In later studies the cyclicality of incidence and duration …, compositional effects and duration dependence of the exit rate out of unemployment have been investigated. Unlike the partial …

available data for fourteen OECD economies. We thendevise a method to decompose changes in unemployment into contributions … accountedfor by changes in inflow and outflow rates for cases where unemployment deviates fromits flow steady state, as it does in … unemploymentvariation within countries. For Anglo-Saxon economies we find approximately a 15:85inflow/outflow split to unemployment …