replacement rates or initial tax rates are high, while no increase in unemployment occurs when institutions are ‘employment …This Paper explains the divergent behaviour of European and US unemployment rates using a job market-matching model of … the labour market with an interaction between shocks and institutions. It shows that a reduction in TFP growth rates, an …

This paper offers an alternative theory for the increase in unemployment and wage inequality experienced in the United … change increases skilled wages, reduces unskilled wages and increases the unemployment rate of both skilled and unskilled …

of different job search methods, conditional unemployment benefit hikes can improve welfare when individuals are risk …

2008-2009 crisis. This paper discusses the efficiency of this type of policy and investigates its impact on unemployment … unemployment during downturns. All in all, it seems that short-time work programs used in the recent downturn had significant …

According to Ljungqvist and Sargent (1998), high European unemployment since the 1980s can be explained by a rise in … to high unemployment benefits. In this Paper we reassess the turbulence unemployment relationship using a matching model … Ljungqvist and Sargent (1998, 2004) are reversed, and higher turbulence leads to a reduction in unemployment. Thus, changes in …

This Paper develops a model with multiple steady states (low tax and low unemployment versus high tax and high … unemployment) in which equilibrium selection is not conditioned on a sunspot variable. Instead, large temporary shocks initiate … possible that the transition to the high-unemployment steady state after a negative shock can be avoided if the government …