, selective survey of the literature. Four fundamental questions are explored: how are unemployment, job vacancies, and employment …

This paper emphasizes the two-way causality between the provision of unemployment insurance and the cultural … generate a lag between the introduction of unemployment insurance and a deterioration of the work ethic. Relying on a … calibration, I argue that it can account for a substantial fraction of the history of European unemployment since World War II. As …

the workers released from the agriculture and industry sector. The resultis higher unemployment. …

are consistent with welfare economic theory. As an example, I derive robust values associated with unemployment using the …

This paper illustrates why fiscal policy becomes more effective as unemployment rises in recessions. The theory is … based on the equilibrium unemployment model of Michaillat (forthcoming), in which jobs are rationed in recessions. Fiscal …; therefore fiscal policy reduces unemployment effectively. Formally the fiscal multiplier—the reduction in unemployment rate …

This paper models unemployment as the result of matching frictions and job rationing. Job rationing is a shortage of … returns to labor. During recessions, job rationing is acute, driving the rise in unemployment, whereas matching frictions … contribute little to unemployment. Intuitively, in recessions jobs are lacking, the labor market is slack, recruiting is easy and …

This article is based on a paper that models unemployment as the result of matching frictions and job rationing. Job … diminishing marginal returns to labor. During recessions, job rationing is acute, driving the rise in unemployment, whereas … matching frictions contribute little to unemployment. Intuitively, in recessions jobs are lacking, the labor market is slack …