This paper provides quasi-experimental estimates of the causal effect of long-term unemployment on wages. Using … standard job search theory, the paper derives and tests conditions on reemployment wages under which Unemployment Insurance (UI …) extensions can be used as instrumental variables (IV) for unemployment duration. Using a regression discontinuity design, the …

One goal of extending the duration of unemployment insurance (UI) in recessions is to increase UI coverage in the face … of longer unemployment spells. Although it is a common concern that such extensions may themselves raise nonemployment …

unemployment on inflation, for given expected inflation, decreased until the early 1990s, but has remained roughly stable since …

European unemployment has been steadily increasing for the last 15 years and isexpected to remain very high for many … years to come. In this paper, we argue thatthis fact implies that shocks have much more persistent effects on unemployment … and firms, shocks which affect actual unemployment tend also to affectequilibrium unemployment. We then confront the …