This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are …

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle. …

measures such as monitoring and job search assistance for each period of unemployment in a dynamic environment with negative … should mainly be used at the beginning of unemployment and for short durations. However, contrary to existing schemes, they …

Heckman correction for selection into unemployment. We identify the positive slope of the labor supply using firms' size as an …

The distribution of unemployment duration in our equilibrium matching model with spell-dependent unemployment benefits … aggregate unemployment rate. Structural estimation using a German micro-data set (SOEP) allows us to discuss the effects of a … recent unemployment benefit reform (Hartz IV). The reform reduced unemployment by only 0.3%. Contrary to general beliefs, we …

participation. A model that is calibrated to replicate the variability of unemployment and participation, and the negative … correlation of unemployment and GDP, implies an aggregate labor supply elasticity along the extensive margin of around 0.3 for men …

optima, non-linear income taxation is a key complement to unemployment insurance. According to the level of the workers …

selective extension of the potential duration of unemployment benefits. If social interactions are important, this policy change … affects entitled individuals not only directly, but also indirectly by altering the duration of unemployment in the reference …