factor shares turn in favour of wages, when unemployment falls. The only important prerequisite for this result is that money … partly determined by the unemployment stock. As intuition says the share of wages in value added increases with the stock of … vacancies and decreases with unemployment. …

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. …

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

vacancies and the stock of unemployment or, alternatively, the duration of unemployment and the stock of vacancies. These …