The Mortensen-Pissarides model with unemployment benefits and taxes has been able to account for the variation in … unemployment rates across countries but does not explain why geographical mobility is very low in some countries (on average, three … times lower in Europe than in the U.S.). We build a model in which both unemployment and mobility rates are endogenous. Our …

"This paper presents new evidence on why unemployment insurance (UI) benefits affect search behavior and develops a … unemployment durations caused by UI benefits is due to a "liquidity effect" rather than distortions in marginal incentives to …

/ Altman, Grubel, Orzag/Snower - which are presented and discussed. It turns out that a true unemployment insurance would be … against such a solution. For example, insurability is often denied on the ground that an unemployment insurance would be too …