unemployed (e.g., unemployment insurance, job search monitoring, social assistance, wage subsidies). This paper provides a … duration of the different policies, the dynamic pattern of payments along the unemployment spell, and the emergence of taxes …/subsidies upon re-employment. The optimal program endogenously generates an absorbing policy of last resort ('social assistance …

payments (e.g. tax rebates) are spent on non-durable household consumption in the quarter that they are received. We develop a … Finances. A version of the model parametrized to the 2001 tax rebate episode is able to generate consumption responses to …

cycle, of several dimensions of economic inequality, including wages, labor earnings, income, consumption, and wealth. After … distribution. Consumption inequality increased less than disposable income inequality, and tracked the latter much more closely at …

This paper develops an analytical framework to study consumption and labour supply in a rich class of heterogeneous … equilibrium joint distribution over wages, hours and consumption. With these expressions in hand, we show that all the structural … wages and hours, and cross-sectional data on consumption. We estimate the model on CEX and PSID data for the U.S. economy …

Employment Protection rules have two separate dimensions: a transfer from the firm to the worker to be laid off and a … an individual employer-worker match is allowed, the impact of severance payments on unemployment duration and incidence …

Does capital-embodied technological change play an important role in shaping labour market inequalities? This Paper … technology growth and institutional variables affect equilibrium wage inequality, income shares and unemployment. Next, it … – Continental Europe comparison: an embodied technological acceleration interacted with different labour market institutions can …

unemployment by lowering the aggregate job-finding rate. We use this framework to measure the contribution of mismatch to the … recent rise in U.S. unemployment by exploiting two sources of cross-sectional data on vacancies, JOLTS and HWOL, a new …/3 of the total observed increase in the unemployment rate, whereas geographical mismatch plays no apparent role. The share …

We examine how technological change affects wage inequality and unemployment in a calibrated model of matching … frictions in the labour market. We distinguish between two polar cases studied in the literature: a ‘creative destruction … the fact that, in the model calibrated to the US economy, both unemployment and vacancy durations are very short, i …

Firing costs due to employment protection legislation have two separate dimensions: a transfer from the firm to the … workers, that this presumption is in general misplaced: the impact of severance payments on unemployment is qualitatively … unemployment, depending on the union’s coverage of outsiders’ contracts. This prediction finds empirical support in a panel dataset …