Denhaan, Wouter; Haefke, Christian; Ramey, Garey - National Bureau of Economic Research (NBER) - 2001
replacement rates or initial tax rates are high, while no increase in unemployment occurs when institutions are 'employment …This paper explains the divergent behavior of European and US unemployment rates using a job market matching model of … the labor market with an interaction between shocks and institutions. It shows that a reduction in TFP growth rates, an …