Ljungqvist, Lars; Sargent, Thomas J. - Institutet för Näringslivsforskning (IFN) - 1997
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. …