This paper accounts for the observed increase in unemployment duration relative to the unemployment rate in the U ….S. over the past thirty years, typified by the record low level of short-term unemployment. We show that part of the increase … remaining increase in unemployment duration relative to the unemployment rate is concentrated among women, whose unemployment …

-aversion reduces wages, unemployment, and investment. Unemployment insurance (UI) has the reverse effect due to market generated moral … hazard: insured workers seek high wage jobs with high unemployment risk. An economy with risk-neutral workers achieves …

This paper argues that unemployment insurance increases labor productivity by encouraging workers to seek higher … whether this effect is comparable in magnitude to the standard moral hazard effects of unemployment insurance. Our model … economy captures the behavior of the U.S. labor market for high school graduates quite well. When unemployment insurance …

generates equilibrium unemployment and vacancies. The equilibrium can be interpreted as the competitive equilibrium of a closely …

market clears at each instant but some labor markets have more workers than jobs, hence unemployment, and some have more jobs … comovement of unemployment, job vacancies, and the rate at which unemployed workers find jobs over the business cycle. It can …-to-employer transitions, and it helps explain the cyclical volatility of vacancies and unemployment. …