We develop a theoretical model of firm dynamics and unemployment and characterize equilibria with tenure dependent … separation taxes. The model is a version of the Lucas and Prescott island model with undirected search. Two equivalent …

calibrating a life cycle model with unemployment risk and endogenous search effort, we find that allowing unemployment replacement …We argue that US welfare would rise if unemployment insurance were increased for younger and decreased for older … workers. This is because the young tend to lack the means to smooth consumption during unemployment and want jobs to …

We develop an equilibrium search-matching model with risk-neutral agents and two-sided ex-ante heterogeneity …. Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The … States in terms of unemployment, productivity growth and wage inequality. To show this, we construct two fictitious economies …

Persistent unemployment after recessions and the policies required to bring it down are the subject of an ongoing … unemployment, requiring the implementation of structural policy reforms. The alternative view is that the slow recovery of the … economy is due to cyclic reasons coming from lack of demand which prevents unemployment from falling quickly. Knowing whether …

-skilled workers. The stylized facts are that profits are concentrated among the high-skilled, involuntary unemployment is mostly among … the low-skilled, and private unemployment insurance is missing. This paper analyzes the effectiveness of redistribution …

This chapter assesses how models with search frictions have shaped our understanding of aggregate labor market outcomes … market outcomes for a large set of OECD countries. We then ask how models with search improve our understanding of these data …. Our results are mixed. Search models are useful for interpreting the behavior of some additional data series, but search …

We construct a multi-sector search and matching model where the unemployed receives idiosyncratic productivity shocks … that make working in certain sectors more productive than in the others. Agents must decide which sector to search in and … face moving costs when leaving their current sector for another. In this environment, unemployment is associated with an …

In this paper we propose a dynamic partial equilibrium model in order to explain the search behaviour of low …-skilled non employed workers, when their employability decreases as the unemployment spell lengthens. We show that the unemployed … react to a reduction in their current search effectiveness by decreasing their search efforts, and react to an expected …

relatively choosier at the beginning of their unemployment spell. Hence they tend to continue to search unless a sufficiently …