; iii) increase with the interaction of rent size and the unemployment rate and decrease with the interaction of rent size …

This paper studies the impact of an increase in the enforcement of labor regulations on unemployment and inequality … workers) leads to: higher unemployment, less income inequality, a higher proportion of formal employment, and a lower formal …

employer and may choose to remain unemployed rather than to accept a low-wage job. In this case, unemployment can serve as a … signal of productivity, and duration of unemployment may be positively related to post-laid-off wages even among workers who … are not recalled. In contrast, because workers whose plant closed cannot be recalled, longer unemployment for them should …

This paper provides a critique of the "unemployment invariance hypothesis," according to which the behavior of the … labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity, and … equilibrating mechanisms to ensure unemployment invariance and that other markets may perform part of the equilibrating process as …

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 …

, the estimates of the elasticity of individual wages to local unemployment rates was -0.07, a value that is very close to …

The Mortensen-Pissarides model with unemployment benefits and taxes has been able to account for the variation in … unemployment rates across countries but does not explain why geographical mobility is very low in some countries (on average, three … times lower in Europe than in the U.S.). We build a model in which both unemployment and mobility rates are endogenous. Our …

This paper provides evidence on the behavior of reservation wages over the spell of unemployment using high … to 24 weeks, we find that self‐reported reservation wages decline at a modest rate over the spell of unemployment, with … point estimates ranging from 0.05 to 0.14 percent per week of unemployment. The decline in reservation wages is driven …