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 …

employment status affects both the level and the persistence of unemployment and numerically that these effects are substantial … to explain the high and persistent European unemployment. …

job applicants by employment status affects both the level and the persistence of unemployment and numerically that these ….) could potentially help to explain the high and persistent unemployment in Europe. …

unemployment. Labor market regulations, unemployment benefits, and high levels of public consumption in many European countries …