Koning, Pierre; Berg, Gerard J. van den; Ridder, Geert - VU University Amsterdam, Faculty of Economics, Business … - 1998
model allows for two types of unemployment: frictional unemployment due to search frictions and structural unemployment due … to wage floors. Wage floors exist because of high unemployment benefits or binding minimum wages. The productivity … decompose the total unemployment rate and we examine the effect of changes in the minimum wage. …