Marimon, Ramon; Zilibotti, Fabrizio - C.E.P.R. Discussion Papers - 1997
. Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The … predictions of our simple model are consistent with the contrasting performance of the labour market in Europe and the United … States in terms of unemployment, productivity growth and wage inequality. To show this, we construct two fictitious economies …