"This paper studies the effect of unemployment benefits on the unemployment and subsequent employment duration using … individual data from the European Community Household Panel, for France, Germany, and the UK. The empirical analysis is based on … heterogeneity. We find that recipients, relative to non-recipients, face lower exit rates from unemployment, while an additional …

This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which … labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching … of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages …

proposes a model of monopolistic competition with an endogenous determination of workers flows in and out of unemployment …