predictions of the model change very little, but the welfare costs of unemployment are much larger because unemployment risk is … distributed unequally across workers. As a result, optimal unemployment insurance may be higher and welfare is lower if hiring is … selective. -- Labor market models ; welfare ; optimal unemployment insurance …

. We use a New Keynesian model with unemployment to predict the effects of different labor market institutions on … ; macroeconomic volatility ; monetary policy ; firing costs ; unemployment benefits ; replacement rate …

This paper addresses the question of why prolonged regional unemployment differentials tend to persist even after their … proximate causes have been reversed (e.g., after wages in the highunemployment regions have fallen relative to those in the low-unemployment … regions). We suggest that the longer people are unemployed, the greater is the likelihood of falling into a low …

This paper addresses the question of why prolonged regional unemployment differentials tend to persist even after their … proximate causes have been reversed (e.g., after wages in the highunemployment regions have fallen relative to those in the low-unemployment … regions). We suggest that the longer people are unemployed, the greater is the likelihood of falling into a low …