Unemployment insurance experience rating imposes higher payroll tax rates on firms that have laid off more workers in … unemployment with heterogeneous firms and realistic UI financing. The model predicts that higher experience rating reduces both job ….4%. While the unemployment rate falls on average by .21 percentage points, the effect on tax revenues is ambiguous. The model …

Unemployment insurance programs balance the benefits of consumption smoothing for unemployed workers against the … disincentive effects of unemployment benefits. Such a balancing of benefits and costs is likely sensitive to the cyclical state of … such responses in an optimal unemployment insurance (UI) program is analyzed in a simple model. The results suggest that an …

This paper develops a simple framework for examining human capital accumulation, unemployment, and relative wages in a …, technical change, and a productivity slowdown. We derive the consequences for the skilled-to unskilled wage gap, unemployment …

despite declines in unemployment rates. For the United States, these seemingly contradictory developments have been reconciled … natural unemployment rate (NAIRU), and (3) improved credibility of monetary policy. Here we ask whether comparable factors … between inflation, the unemployment rate, and structural factors using an extended Phillips curve model with quarterly data …

I examine whether the cyclical behavior of unemployment has changed over the post WWII period. Specifically, I test … whether cyclical movements in unemployment have become more persistent. Finding that they have, indeed, become more persistent … payroll employment as well as unemployment and that increased persistence appears to be widespread across industries. At the …

Shimer (2005) argues that the Mortensen-Pissarides (MP) model of unemployment lacks an amplification mechanism because … it generates less than 10 percent of the observed business cycle fluctuations in unemployment given labor productivity … correctly identify the shocks driving unemployment. Using a New-Keynesian framework to control for the endogeneity of …

This paper presents a search model of unemployment with a new mechanism of job separation based on firms' demand … about unemployment that the Mortensen-Pissarides (1994) model has difficulties explaining jointly: (i) the unemployment …-vacancy correlation is negative, (ii) the contribution of the job separation rate to unemployment fluctuations is small but non …

response to changes in the unemployment rate. This paper offers a theoretical justification for such a nonlinear policy rule …