The paper presents a tractable general equilibrium model of search unemployment that incorporates absence from work as … a distinct labor force state. Absenteeism is driven by random shocks to the value of leisure that are private … among nonemployed individuals interact with their search decisions and trigger movements into and out of the labor force …

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 … worker may prefer nonparticipation if the disutility of search is amplified by sickness. The decisions governing labor force …

in geographical mobility, unemployment and labor market institutions. Rational agents vote over unemployment insurance … unemployment, low geographical mobility and high unemployment insurance, and one American steadystate featuring low unemployment …, high mobility and low unemployment insurance. …

search productivity of unemployed is constant over the unemployment spell, benefits should typically increase or be constant …The issue of whether unemployment benefits should increase or decrease over the unemployment spell is analyzed in an … increasing benefits, moral hazard problems for constant benefits and decreasing search productivity for decreasing benefits. …

accept a less demanding traditional job. Unemployment arises from job separation in the declining sector and difficulties in …) a wage subsidy to re-employed workers; (iii) unemployment insurance; (iv) moderate job protection; and (v) active labor …

Unemployment insurance (UI) sanctions in the form of benefit reductions are intended to set disincentives for UI …. -- Unemployment insurance sanctions ; dynamic matching …

This paper provides a review of the recent literature on how incentives in unemployment insurance (UI) can be improved … that the case for imposing a penalty on less active job search is fairly solid. A growing number of empirical studies …

This paper analyses crucial design features of unemployment insurance (UI) policies. We examine three different means … workfare. To that end we develop a quantitative model of equilibrium unemployment. The model features worker heterogeneity … monitoring and sanctions restores search incentives most effectively, since it brings additional incentives to search actively so …

This paper analyzes the design of optimal unemployment insurance in a search equilibrium framework where search e …¤ort among the unemployed is not perfectly observable. We examine to what extent the optimal policy involves monitoring of search … effort and benefit sanctions if observed search is deemed insufficient. We find that introducing monitoring and sanctions …

unemployment. Labor market regulations, unemployment benefits, and high levels of public consumption in many European countries …