the information available to workers, it is shown that wages are less flexible than needed for efficient employment levels …, with the result that too few hires are made in bad states of the world. Unemployment is involuntary. In an extension to the …

The idea that wages rise relative to alternatives as job seniority accumulates is the foundation of the theory of … tenures typically earn higher wages tends to support these views, yet this evidence ignores the decisions that have brought … individuals to the combination of wages, job tenure, and experience that are observed in survey data. Allowing for sources of bias …

The idea that wages rise relative to alternatives as job seniority accumulates is the foundation of the theory of … tenures typically earn higher wages tends to support these views, yet this evidence ignores the decisions that have brought … individuals to the combination of wages, job tenure, and experience that are observed in survey data. Allowing for sources of bias …

small reduction in the unemployment benefits, or introducing a small cash bonus for workers that get a new job, may have no … e.ect on unemployment in some cases, while eradicating significant levels of unemployment in other cases. Our analysis … multiple equilibria may exist in a game involving both workers and an unemployment-averse government. Furthermore, we explore a …

of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages …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 …