The paper surveys unemployment policies for advanced market economies and evaluates them by examining the predictions … of the underlying macroeconomic theories. The basic idea is that, for the most part, different unemployment policy …--on the theories` ability to predict some salient stylized facts about unemployment behavior. The paper considers four types …

, generous unemployment insurance and active labor market programmes. It analyzes in which conditions flexicurity can be optimal …, with firms more likely to survive and thus not exposing much their workers to unemployment risk. Activation programmes … support the reallocation flow from unproductive to productive firms, helping to reduce unemployment. Low employment protection …

unemployment after program end we estimate the effect of keeping a subsidized job versus participating in training and taking up a …

model of equilibrium unemployment. We find that higher firing costsmay even reduce temporary work agency employment if …-term employment arrangements. -- employment protection ; temporary work agencies ; search and matching models ; unemployment …

(carrots) and restrictive (sticks) programs. We apply this to contrast regime and treatment effects on unemployment durations …, employment, and post-unemployment earnings using register data that contain PES and case-worker identifiers for about 130,000 job … seekers. The results show that "carrots" and "sticks" treatments prolong unemployment, but carrots increase earnings whereas …

) programs. We apply this to contrast regime and treatment effects on unemployment durations, employment, and postunemployment … intensive carrots and sticks regimes each reduce unemployment durations, but with carrots regimes this raises earnings whereas …