In this paper, we quantify the contribution of labor market reforms to unemployment dynamics in nine OECD countries … dynamic stochastic search-matching model with heterogeneous workers, where aggregate shocks to productivity fuel up the cycle … the heterogeneous-worker mechanism proposed by Robin (2011) to explain unemployment volatility by productivity shocks …

Subsidizing the geographical mobility of unemployed workers may improve welfare by relaxing their financial constraints … and allowing them to find jobs in more prosperous regions. We exploit regional variation in the promotion of mobility … mobility - as intended - causes job seekers to increase their search radius, apply for and accept distant jobs. At the same …

we examine the policy effects of the minimum wage, unemployment benefits and search frictions. …