This paper studies the role of culture in shaping unemployment outcomes. The empirical analysis is based on local … comparisons across a language barrier in Switzerland. This Röstigraben separates cultural groups, but neither labor markets nor … political jurisdictions. Local contrasts across the language border identify the role of culture for unemployment. Our findings …

This paper estimates the causal effect of long-term unemployment on wages. Job search theory implies that if … Unemployment Insurance (UI) extensions do not affect wages conditional on the month of unemployment exit, then reservation wages do … not bind on average. Then, UI extensions affect mean wages only through unemployment durations and are valid instrumental …