In this paper we propose a dynamic partial equilibrium model in order to explain the search behaviour of low-skilled non employed workers, when their employability decreases as the unemployment spell lengthens. We show that the unemployed react to a reduction in their current search...

Flexibility - which in many European countries has been introduced or enhanced through the liberalization of non-standard contracts - does not necessarily imply work insecurity. By looking at a monetary measure of what one gets from the labor market and the social protection system in the medium...