unemployment. But many orthodox reforms of the labor market have proved difficult to implement because of political opposition. For …

summarized as the very existence of unemployment generating political support for "sclerosis". This may help to explain the timid …

In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment …

Structural unemployment is due to mismatch between available jobs and workers. We formalize this concept in a simple … costs across segments generate structural unemployment. We estimate the contribution of these costs to fluctuations in US … unemployment, operationalizing segments as states or industries. Most structural unemployment is due to wage bargaining costs …

predictions of the model change very little, but the welfare costs of unemployment are much larger because unemployment risk is … distributed unequally across workers. As a result, optimal unemployment insurance may be higher and welfare is lower if hiring is …