America, Oceania, and East Asia. This has led to low labor force participation and high unemployment, especially among young … unnecessary evil. Restructuring unemployment and pension benefits will help to increase participation and reverse the decline of …

labor market institutions may sometimes favor physical and human capital investments in second-best environments. …

This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which … of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages … individuals do not search for jobs when non-employed. Facing changes in the value of inactivity, individuals transit through three …