This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which individuals do not search for jobs when non-employed. Facing changes in the value of inactivity, individuals transit through three labor market states. In steady-state, we hence...

It is frequently argued that pure government-mandated severance transfers by the employer to the worker have neither employment nor welfare effect because they can be offset by private transfers from the worker to the employer. In this paper, using a dynamic search and matching model a la...

This paper develops a model that shows why high-skilled workers move more and are therefore unemployed less than low-skilled workers. The model can explain the paradoxical empirical regularity that higher owner-occupation rates are associated with higher levels of unemployment although...

This paper makes two contributions to the empirical matching literature. First, a recent study by Anderson and Burgess (2000) testing for endogenous competition among job seekers in a matching frame-work, is replicated with a richer and more accurate data set for Germany. Their results are...

In this paper, I study temporary migrations, and its consequences for immigrants' behaviour. I distinguish between temporary migrations where the return time is exogenous, and temporary migrations where the migrant chooses when to return. I then illustrate the consequences both types of...

In this paper we extend a job search-matching model with firm-specific investments in training developed by Mortensen (2000) to allow for different offer arrival rates in employment and unemployment. The model by Mortensen changes the original wage posting model (Burdett and Mortensen, 1998) in...