mandated unemployment insurance (UI) and employment protection (EP). To illuminate the forces in these models, we study how UI … higher layoff taxes suppress frictional unemployment in less turbulent times, prevails in the models with labour market … impossible to include generous government-supplied unemployment insurance in that model without getting the unrealistic result …

Similar durations but lower flows into unemployment gave Europe lower unemployment rates than the United States until … the 1970's. But since 1980, higher durations have kept unemployment rates in Europe persistently higher than in the U.S. A … costs and more generous unemployment compensation make its unemployment rate respond to a parameter that measures a worker …

To generate big responses of unemployment to productivity changes, researchers have reconfigured matching models in … introducing costly acquisition of credit, or by positing government mandated unemployment compensation and layoff costs. All of … these redesigned matching models increase responses of unemployment to movements in productivity by diminishing the …

high unemployment benefits, an increase in turbulence increases the unemployment rate and the duration of unemployment … while leaving the inflow rate into unemployment roughly unchanged, mirroring features of European data in the 1980s and 1990 …