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

fill jobs. Moreover, unemployment rates are higher in industries which use employee referrals more extensively. This paper … search is, however, not necessarily efficient. Congestion externalities in referral search imply that unemployment would be …

in geographical mobility, unemployment and labor market institutions. Rational agents vote over unemployment insurance … high unemployment, low geographical mobility and high unemployment insurance, and one 'American' steady-state featuring low … unemployment, high mobility and low unemployment insurance. …

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 …

Labor market regulations have often being blamed for high and persistent unemployment in Europe, but evidence on their …

In this paper, we incorporate a positive theory of unemployment insurance into a dynamic overlapping generations model … unemployment insurance levels in a politico-economic equilibrium. The interaction between the political decision about the level of … the unemployment insurance and the optimal search behavior of the unemployed gives rise to a self-reinforcing mechanism …

We construct and calibrate a general equilibrium business cycle model with unemployment and precautionary saving. We …' income riskier, both by increasing the unconditional probability of unusually long unemployment spells, and by making wages … fiscal policy offsets the cycle, holding unemployment benefits constant but varying the tax rate procyclically to smooth …

. Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The … unemployment, productivity growth and wage inequality. To show this, we construct two fictitious economies with calibrated … parameters which only differ by the degree of unemployment insurance and assume that they are hit by a common technological shock …