the unemployment insurance and the optimal search behavior of the unemployed gives rise to a self-reinforcing mechanism … employment turnover and high insurance can co-exist with an American-type steady-state with low unemployment, high employment …In this paper, we incorporate a positive theory of unemployment insurance into a dynamic overlapping generations model …

. 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 …

and by the need to reallocate workers across productive activities. The duration of unemployment and jobs and wage … policies on wages and unemployment. …

The potential distortions of job-search incentives caused by unemployment benefits and their financing are well known …

This paper offers a model of the interaction between composition of jobs and labour market regulation. Ex-post rent … number of good jobs. Minimum wages and unemployment insurance encourage workers to wait for higher wages, and therefore … induce firms to shift the composition of employment towards good jobs. As a result, such regulations, even though they will …

proportion of the workforce is unskilled, firms have little incentive to provide good jobs (requiring high skills and providing … high wages), and if few good jobs are available, workers have little incentive to acquire skills. In this context, the … countries have responded so differently to the broad-based shift in labour demand from unskilled to skilled labour. …

This paper offers an alternative theory for the increase in unemployment and wage inequality experienced in the United … States over the past two decades. In my model firms decide the composition of jobs and then match with skilled and unskilled … change the nature of equilibrium such that firms start creating separate jobs for the skilled and the unskilled. Such a …

with search-matching frictions. Job creation entails some fixed costs, but existing jobs are subject to diminishing returns … respond endogenously. In general, this regulation benefits workers, both unemployed and employed (even if wages decrease), but … reduces profits and and output. Employment effects are sensitive to the representation of preferences. In our benchmark, small …

This paper considers an equilibrium model of unemployment in a labour market where all vacancies are advertised in a … newspaper. Unemployment occurs in occupations that are short on vacancies. New vacancies are created by entrepreneurial search … and investment, so it may take some time before an unemployed worker finds a job. Wages are determined by bargaining. A …