compensation on the unemployment rate and aggregate welfare taking into account the induced change in the wage offer distribution …This paper develops a simple general equilibrium model with sequential search in which a non-degenerate wage offer … distribution is endogenously determined. We use this model to analyze the comparative statics effects of increases in unemployment …

rigidities as well as production lags in the use of intermediate goods. In this context, changes in production demand …-generated, say, by changes in the money supply - have long-lasting price and quality effects. …

presence can be tested, and draw out its implications for the wage and welfare gains to the activity. An empirical application …

subject to strong qualifications. It is demonstrated that the wage and employment effects of a one percentage point increase … in wage costs) than an increase in the employers part of the tax. This non-neutrality, however, does not prevail when the …

manufacturing. Most of this increase was due to increased wage subsidies to specific firms facing acute difficulties. The Swedish … selective wage subsidy yields higher industrial output, employment and export in the short run than alternative subsidy policies …

Post World War II European welfare states experienced several decades of relatively low unemployment, followed by a … plague of persistently high unemployment since the 1980s. We impute the higher unemployment to welfare states' diminished … search model where workers accumulate skills on the job and lose skills during unemployment. …