Ljungqvist, Lars; Sargent, Thomas J - C.E.P.R. Discussion Papers - 2002
Similar durations but lower flows into unemployment gave Europe lower unemployment rates than the United States until … the 1970's. But since 1980, higher durations have kept unemployment rates in Europe persistently higher than in the U.S. A … general equilibrium search model with human capital explains how these outcomes arise from the way Europe's higher firing …