The goal of this paper is to determine the effects of different social security regimes on job search. A less generous pension system induces higher savings across the life cycle and makes agents wealthier and thus more reluctant to accept low wage offers. On the other hand, as the social...

In order to understand the relationship between homeownership and unemployment the we extend the model in Rendon (2006) that studies the relation between asset accumulation and job search to include the link between homeownership and asset accumulation. We establish the connection between...

In this paper we explain how easier home financing and higher homeownership rates increase unemployment rates. To this purpose we build a model of job search with liquid wealth accumulation and consumption of housing, that can be rented, bought on credit, or sold. In our model, more relaxed...

This paper presents a survey of the most recent literature about Equilibrium Search Models with wage posting. Starting with the basic Burdett and Mortensen (1998) model. I describe the main consequences of departing from its two main assumptions: random matching and a linear production function....

Unemployment rates in developed countries have recently reached levels not seen in a generation, and workers of all ages are facing increasing probabilities of losing their jobs and considerable losses in accumulated assets. These events have increased the reliance that most (older) workers have...

We analyze the Spanish temporary workers’ transitions into permanent employment and to what extent those who become unemployed are able to achieve a permanent job. Our focus is placed on the role of the individual’s sequence of temporary contracts on the probability of moving from temporary...

Using data from the European Community Household Panel for the period 1995-2001, in this paper we show that there are sizeable public sector wage differences among regions that are mostly due to differences in returns, and to a lesser extent to differences in characteristics and to selection...

This paper shows that liquidity constraints restrict job creation even with flexible labor markets. In a dynamic model of firm investment and demand for labor with imperfect capital markets, represented as a constraint on dividends, and imperfect labor markets, contained in legal firing costs...

In this paper I show how borrowing constraints and job search interact. I fit a dynamic model to data from the National Longitudinal Survey (1979-cohort) and show that borrowing constraints are significant. Agents with more initial assets and more access to credit attain higher wages for several...

The goal of this paper is to determine the effects of different social security regimes on job search. A less generous pension system induces higher savings across the life cycle and makes agents wealthier and thus more reluctant to accept low wage offers. On the other hand, as the social...