This paper addresses the question of why high unemployment rates tend to persist even after their proximate causes have …

This paper indicates that East Germany's unemployment originates primarily in the labor market, caused by the fast wage … traps. -- Unemployment ; labor market trap ; East Germany …

of the unemployment pool. We show that workers with high wages have both lower separation rates and larger log … unemployment pool in recessions, leading to a positive correlation between unemployment and the prior wage of those losing their …

of the unemployment pool. We show that workers with high wages have both lower separation rates and larger log … unemployment pool in recessions, leading to a positive correlation between unemployment and the prior wage of those losing their …

quantitative effects of (i) aggregate productivity shocks on unemployment and (ii) unemployment benefits on unemployment. This … model, unemployment benefits affect households' behavior directly, without having to run via the bargained wage. A … effect of benefits on unemployment. Our analysis shows the importance of investigating the effects of policies on the …