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

little employment protection and low unemployment benefits, while the European model (generous benefits and higher duration …

This paper develops a model of unemployment fluctuations. The model keeps the architecture of the Barro and Grossman … (1971) general disequilibrium model but replaces the disequilibrium framework on the labor and product markets by a matching … flexible to completely rigid. With some price rigidity, aggregate demand influences unemployment through a simple mechanism …

This paper provides evidence on the behavior of reservation wages over the spell of unemployment using high … to 24 weeks, we find that self‐reported reservation wages decline at a modest rate over the spell of unemployment, with … point estimates ranging from 0.05 to 0.14 percent per week of unemployment. The decline in reservation wages is driven …

% compared to what would prevail in the absence of the minimum wage, an effect attributable to (i) unemployment effects of the …