structure in Europe in the 1980s. These different trends are the result of different investment decisions by firms for the jobs …

states of employment, unemployment, and non-participation. The determinants of actual household transitions are then …In this paper, the added worker effect is interpreted as a response to uncertain returns to labour supply offers by … members of a household. A model of household labour supply is developed In which each member's current labour force status …

Many countries have policies aimed at creating jobs in depressed areas with high unemployment rates. In standard … develop a stylized model of frictional local labor markets with the goal of studying the efficiency of unemployment … housing costs, and lower unemployment rates. Although workers can move freely to arbitrage away differences in expected …

We survey the recent empirical literature on the effects of offshoring on wages, employment and displacement. We start … offshoring across occupations. Finally, we survey the literature that examines how offshoring affects employment and displacement …

This chapter reviews the literature on employment and labor law. The goal of the review is to understand why every … jurisdiction in the world has extensive employment law, particularly employment protection law, while most economic analysis of the … law suggests that less employment protection would enhance welfare. The review has three parts. The first part discusses …

pensions when they are unemployed, can be welfare increasing, because it allows increased inter-temporal consumption smoothing … loans should still be a part of the unemployment package for the young unemployed. We also show that, if the incidence of … for the old, while the amount of consumption for the unemployed young is greater than for the unemployed old. We …

idiosyncratic employment shocks against which they cannot insure directly. The labor market has a Diamond … set of contingent claims conditional on this risk.We use the model to evaluate a tax-financed unemployment insurance … scheme. Higher insurance is beneficial for consumption smoothing, but because it raises workers' outside option value, it …

This paper presents new evidence on why unemployment insurance (UI) benefits affect search behavior and develops a … unemployment durations caused by UI benefits is due to a quot;liquidity effectquot; rather than distortions in marginal incentives …

welfare. This insight leads to a novel test for the optimality of unemployment insurance based on the responsiveness of … reservation wages to unemployment benefits. Some existing estimates imply significant gains to raising the current level of … unemployment benefits in the United States, but highlight the need for more research on the determinants of reservation wages. Our …

This paper develops a model with multiple steady states (low tax and low unemployment versus high tax and high … unemployment) in which equilibrium selection is not conditioned on a sunspot variable. Instead, large temporary shocks initiate … possible that the transition to the high-unemployment steady state after a negative shock can be avoided if the government …