We examine the optimal labor market-policy mix over the business cycle. In a search and matching model with risk-averse workers, endogenous hiring and separation, and unobservable search effort we first show how to decentralize the constrained-efficient allocation. This can be achieved by a...

We study the long-term impact of job displacement on workers' commuting behavior. Our measures of commuting exploit geo-coordinates of workers' places of residence and places of work, from which we calculate the door-to-door commuting distance and commuting time. Using German employee-employer...

This paper estimates the liquidity effect and moral hazard effect of extended un- employment insurance (UI) benefits using two natural experiments. In Taiwan, since unemployed workers eligible for unemployment benefits receive 50% of their remaining entitlements if reemployed before they exhaust...