for economies with either an earnings-related or flatrate unemployment compensation system are considered. A distinctive … feature of the analysis is the comparison of both unemployment compensation systems in a two-country setting. It is … demonstrated that the performance of a system with earnings-related or flat-rate unemployment benefits depends on whether the labor …

This paper provides a critique of the "unemployment invariance hypothesis", according to which the behavior of the … labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity, and … equilibrating mechanisms to ensure unemployment invariance and that other markets may perform part of the equilibrating process as …

Based on a two-country model it is scrutinized how the structure of the unemployment benefit system affects the … consequences of idiosyncratic labor market shocks on real wages and unemployment in other countries. International spillover …

for economies with either an earnings-related or flatrate unemployment compensation system are considered. A distinctive … feature of the analysis is the comparison of both unemployment compensation systems in a two-country setting. It is … demonstrated that the performance of a system with earnings-related or flat-rate unemployment benefits depends on whether the labor …

provoked if a single country reduces the generosity of the unemployment compensation system or weakens labor union power. For … degree of competition in the goods market and the institutional setup of the unemployment compensation system. Furthermore …

empirical regularities that the conventional matching model cannot. -- Matching ; incentives ; adjustment costs ; unemployment …