Based on a two-country model it is scrutinized how the structure of the unemployment benefit system affects the … consequences of idiosyncratic labor market shocks on real wages and unemployment in other countries. International spillover …

macroeconomic outcome of the reforms. For that purpose, we construct a new empirical model that links equilibrium unemployment … and separation rate as well as unemployment and vacancies. Cointegration and identification are addressed. We find that …

market to generate regional unemployment disparities alongside the usual core-periphery pattern of industrial agglomeration … the bargaining process on local labor markets, leading to differences in vacancies and unemployment as well. In a setting … with two regions, both higher or lower unemployment rates in the core region are possible equilibrium outcomes, depending …