, that frictions (sand-in-the-wheels) may decrease unemployment and that the equilibrium is determined by two simple …

job-to-job mobility to study policy spillovers in the context of three local minimum wage increases. Estimated spillover …

We introduce a model of two-sided statistical discrimination in which worker and firm beliefs are complementary. Firms … both empirical analysis designed to detect discrimination and policy meant to alleviate it. Affirmative action is much less … effective than in traditional statistical discrimination models. More generally, we demonstrate the futility of one …

integration pathbreakers in the success and speed with which integration occurs. In our model of labor market discrimination …

We develop a model of self-sustaining discrimination in wages, coupled with higher unemployment and shorter employment … values the model has two steady states, one corresponding to each population group. Discrimination can persist even if the …

employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of …). Accordingly, the efficient unemployment rate is the geometric average of the unemployment and vacancy rates: u* = √uv. We compute …

This study documents how job seekers update perceived job-finding prospects by unemployment duration and by learning … about aggregate unemployment. We find that job seekers perceive an 18% decline in their job-finding probability for each … additional month of unemployment, but perceive a higher job-finding probability when the aggregate unemployment rate is …