Recently improved Swedish register data have made it possible to remedy many weaknesses of previous research on displaced workers. Using linked employer-employee data, we identify all workers displaced in 1987, due to an establishment closure, and follow them over both a predisplacement period...

Should unemployment benefits be paid indefinitely at a fixed rate or should the rate decline (or increase) over a worker's unemployment spell? We examine these issues using an equilibrium model of search unemployment. The model features worker-firm bargaining over wages, free entry of new jobs,...