This paper studies worker displacement in the United States and the Netherlands. We discuss the relevant institutions, and we analyze the incidence and consequences of displacement. In the 1993 - 1995 period, displancement rates in the US and the Netherlands are about the same, and vary...

We analyze a general search model with on-the-job search and sorting of heterogeneous workers into heterogeneous jobs. This model yields a simple relationshipbetween (i) the unemployment rate, (ii) the value of non-market time, and (iii) themax-mean wage differential. The latter measure of wage...

The continuing deterioration of the position of low skilled workers in the beginning of the 90's in essentially all industrialized countries is one of the most debated issues in both labor and macro-economics. In this paper a matching model with low and high skilled workers and simple and...