Merkl, Christian; Rens, Thijs van - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2012
Firms select not only how many, but also which workers to hire. Yet, in standard searchmodels of the labor market, all … positivepredictions of the model change very little, but the welfare costs of unemployment are muchlarger because unemployment risk is … distributed unequally across workers. As a result,optimal unemployment insurance may be higher and welfare is lower if hiring is …