This paper studies equilibrium unemployment in a two-region economy with matching frictions, where workers and jobs are … effectiveness out of the region of residence has an ambiguous impact on unemployment rates. While it reduces the probability of …

selective extension of the potential duration of unemployment benefits. If social interactions are important, this policy change … affects entitled individuals not only directly, but also indirectly by altering the duration of unemployment in the reference …

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two … sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment … real wages and unemployment levels in the unskilled labor intensive sector. However, the inequality of workers between …

This paper studies a two-region model in which unemployment, education decisions and interregional migration are … endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are … change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment …

unemployment. Four main results are derived: (i) the optimal size of the welfare state depends on the degree of risk-aversion and … the unemployment rate as a measure of labor income risk. The unemployment rate partly reflects the country’s exposure to … globalization; (ii) corporate taxation and social insurance have equivalent effects on unemployment and outbound FDI; (iii) while an …

challenges the two basic functions of the welfare state, redistribution and social insurance when private unemployment insurance … markets are missing. The main results are: (i) outsourcing raises unemployment and labor income risk ofunskilled workers; (ii … welfare optimal redistribution and unemployment insurance policies. …

receive higher wages than employed singles. The model is applied to a welfare analysis of alternative unemployment insurance …

This paper analyzes the strikingly different response of unemployment to the Great Recession in France and Spain. Their … labor market institutions are similar and their unemployment rates just before the crisis were both around 8%. Yet, in … France, unemployment rate has increased by 2 percentage points, whereas in Spain it has shot up to 19% by the end of 2009. We …