Why are regional unemployment differentials in Europe so persistent if, as the wage curve literature demonstrates, there is no compensation through wages? Using Urban Audit data for 142 cities over 12 EU countries, as well as a Dutch household survey, we estimate relationships between local...

In a simultaneous analysis of unemployment duration and search intensity, the authors estimate a nonstructural search model accounting explicitly for two features of the benefit system: benefit level and time remaining until exhaustion of the entitlement period (residual entitlement). Special...