's theoretical framework: (i) wages are higher in states with more generous unemployment benefits, (ii) the perceived probability of … pay and the local unemployment rate - in modern U.S. data. Consistent with recent evidence from more than 40 other … job-finding is lower in states with higher unemployment, and (iii) employees are less happy in states that have higher …

by an intriguing puzzle - the large gap between the theory and empirical work. While the hypothesis that growing labor … consistent evidence in support of this theory. The primary contribution of this chapter is to document how recent research … - primarily since the late 1990s - makes substantial progress in resolving this disconnect between the theory and empirics. To …

bargaining, minimum wages, employment protection and unemployment benefits affect the way in which wages respond to labor supply … shocks, and, hence, the labor market effects of immigration. We employ a wage-setting approach which assumes that wages … decline with the unemployment rate, albeit imperfectly. We find that wage flexibility is substantially higher in the UK …

the labor market. Its impact on employment, wages and wealth depends crucially on the design of immigration policy …