unskilled unemployment via consumer demand: longer work hours and higher labor force participation imply higher incomes and less … consumer demand toward unskill-intensive goods. Relative demand for unskilled labor rises and unemployment falls. Finally, we …

EWE is a consequence of one of the most important labor institutions: the unemployment benefit (UB). We develop a model …

This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which … labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching … of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages …