In this paper we investigate the incentives of unemployed workers to wait for a recall when recall probabilities are endogenously determined by the waiting decisions of others. Because of a positive externality that arises when workers seek new employment, an excessive number of workers choose...

Recent evidence suggests that self-regulation plays an important role for labor market success. We conducted a randomized natural field experiment embedded in an existing labor market reactivation program to examine the effect of a self-regulation training on long-term unemployed individuals....

We study the dual role of active labour market policies: First, ALMP may perform a screening role by increasing job-finding rates among individuals with good labour market prospects, already prior to programme participation. Second, actual program participation may help individuals with poor...

We use individual data for Great Britain over the period 1992-2009 to compare the probabilitythat employed and unemployed job seekers find a job and the quality of the job they find. Thejob finding rate of unemployed job seekers is 50 percent higher than that of employed jobseekers, and this...

Unemployment may depend on equilibrium in other markets than the labor markets. Thispaper adresses this old idea by introducing search frictions on several markets: in a model ofcredit and labor market imperfections as in Wasmer and Weil (2004), I further introducesearch on the goods market. The...

The “Great Recession” resulted in many business closings and foreclosures, but what effectdid it have on business formation? On the one hand, recessions decrease potential businessincome and wealth, but on the other hand they restrict opportunities in the wage/salary sectorleaving the net...

This paper examines the Turkish wage curve using individual data from the HouseholdLabor Force Survey (HLFS) including 26 NUTS-2 regions over the period 2005-2008.When the local unemployment rate is treated as predetermined, there is evidence infavor of the wage curve only for younger and female...

We explore whether finance influences the impact of labour market institutions onunemployment. Using a data set of 18 OECD countries over 1980-2004, we estimate a panelVectorAutoRegressive model. We check whether causalities from labour market variables tounemployment are affected by financial...

A significant fraction of the labor force consists of employed workers who are part-timeunemployed (underemployed) in the sense that they are unable to work as much as theyprefer. This paper develops a search and matching model to study the design of optimalunemployment insurance in an economy...

This paper studies the impact of product and labor market regulations on informality andunemployment in a general framework where formal and informal firms are subject to thesame externalities, differing only with respect to some parameter values. Both formal andinformal firms have monopoly...