, unemployment) emerges out of the decentralized interactions of heterogenous firms and workers. Building upon the model in Dosi et … findings that rigid industrial relations may foster hysteretic behaviour in aggregate unemployment. On the contrary, in line … entry dynamics are better candidates to explain long-run unemployment spells and lower output growth. In that, more rigid …

search, and at providing training to unemployed people. Next, we compare the effects of these policies with unemployment … benefits simply meant to sustain income and therefore aggregate demand. Considering the burden of unemployment benefits in … ALMPs in reducing unemployment and workers' skills deterioration; and (iv) demand-management policies are better suited to …