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In this paper, we study the effect of skill-biased technological change on unemployment when benefits are linked to the … workers and hence their wage leads to an increase in average income and hence in benefits. The increased fallback income, in … unskilled when benefits are endogenous. The model provides a theoretical explanation for diverging developments in wage …
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This Selected Issues paper investigates the possible contribution of activation strategies—in a broad sense—to improve employment rates in Finland. It summarizes recent labor market developments in Finland, and investigates respectively the limitation of current unemployment and...
Persistent link: https://www.econbiz.de/10011244764
The theoretical literature has argued that a centralized wage bargaining system may result in low regional wage differentiation and high regional unemployment differentials. The empirical literature has found that centralized wage bargaining leads to lower wage inequality for different skills,...
Persistent link: https://www.econbiz.de/10005264211
We examine how a 16-week cut in potential unemployment insurance (UI) duration in Missouri affected search behavior of UI recipients and the aggregate labor market. Using a regression discontinuity design (RDD), we estimate a marginal effect of maximum duration on UI and nonemployment spells of...
Persistent link: https://www.econbiz.de/10012233084
We provide new evidence on the effect of the unemployment insurance (UI) weekly benefit amount on unemployment insurance spells based on administrative data from the state of Missouri covering the period 2003-2013. Identification comes from a regression kink design that exploits the...
Persistent link: https://www.econbiz.de/10012236713
Wage setters take into account the future consequences of their current wage choices in the presence of downward nominal wage rigidities. Several interesting implications arise. First, a closed-form solution for a long-run Phillips curve relates average unemployment to average wage inflation;...
Persistent link: https://www.econbiz.de/10005825999