costs influence insider wages and outsiders' opportunities and how these costs affect employment and unemployment. We also … address the more complex, and open, question of how employment and unemployment move through time, in response to labor market …

will employment be affected? In addressing this question, we focus on the role of on-the-job training. We show that an … insider wage hike reduces recession-time employment but, in the presence of on-the-job training, increases boom …-time employment. Thus on-the-job training can make insider wage hikes less detrimental to average employment (over booms and …

This paper analyses theoretically and empirically how employment subsidies should be targeted. We contrast measures … efficiency" (AWE). Thereby we can identify policies that (a)improve employment and welfare, (b)do not raise earnings inequality …

work fall and consequently their employment chances fall. In this way, temporary recessions may come to have permanent … effects on aggregate employment. We also show that these permanent effects, along with the underlying identity switches, can …