reduces unemployment duration but increases incidence with an ambiguous effect on overall employment. A firing tax has the … offsets the distortions on the job destruction margin induced by unemployment compensation and employment protection policy …

This paper develops a theory characterizing the effects of fiscal policy on unemployment over the business cycle. The … theory is based on a model of equilibrium unemployment in which jobs are rationed in recessions. Fiscal policy in the form of … government spending on public-sector jobs reduces unemployment, especially during recessions: the fiscal multiplier …

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 …

This Paper explains the divergent behaviour of European and US unemployment rates using a job market-matching model of … increase in real interest rates, and an increase in tax rates leads to a permanent increase in unemployment rates when the … replacement rates or initial tax rates are high, while no increase in unemployment occurs when institutions are ‘employment …

Existing estimates of the annual unemployment rate from 1870 to 1913 were constructed by the Board of Trade, initially … reconstruct sectoral unemployment rates based on union records and supplement this with (crude) estimates for certain other … deviation than the Board of Trade index. The wide swings in unemployment during the 1870s are confirmed but the amplitude of …

able to generate fragile equilibria. For instance, in this literature the natural unemployment rate is allowed to shift … over time depending on past unemployment. Actually, many European unemployment series seem to exhibit a unit root or … persistence. This view is questioned in the paper using German data on unemployment. A new class of time-series models, the …

unemployment, very low volatility of labour market tightness, and for a positively sloped Beveridge curve. These implications are …

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 …

spirit of Blanchard and Summers (1988), the model can generate multiple equilibria, with a low-quits/high-unemployment … equilibrium coexisting with a high-quits/low-unemployment equilibrium. Under weak conditions, low-unemployment equilibria Pareto … dominate high-unemployment equilibria. Mobility premia improve aggregate welfare but may increase unemployment. …