minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low … gains of more skill formation outweigh the social welfare losses of increased unemployment. Using a highly conservative …

The paper presents a model that allows a unified analysis of sickness absence and search unemployment. Sickness appears … affect individual decisions on absence and search and the implications for employment, unemployment and nonparticipation. The …

unemployment benefits; we find that the MW is preferred by the majority of workers (even when the unemployed receive very generous … unemployment benefits). In the second model, the government engages in redistribution through the public provision of private goods … given generosity of the unemployment benefit scheme, the maximum, politically viable, MW is lower than in the absence of in …

A key question in labor market research is how the unemployment insurance system affects unemployment rates and labor … 76% of declining unemployment after the reform, a fact unexplained by existing research focusing on job finding rates … causally link our empirical findings to the reduction in long-term unemployment benefits using a heterogeneous-agent labor …