-Mortensen-Pissarides model. Log linearization under- states the mean and volatility of unemployment, but overstates the volatility of labor … market tightness and the magnitude of the unemployment-vacancy correlation. Log linearization also understates the impulse … responses in unemployment in recessions, but overstates the responses in the market tightness in booms. Finally, the second …

unemployment is one explanation. In this paper, we focus on the unemployed’s expectations of being stigmatized (stigma …

unemployment benefits. We use the 1999 unemployment insurance reform of Portugal, a quasi-natural experiment. The reform increased … the maximum duration of benefits for three groups of agents and maintained all features of the unemployment insurance for … successfully predicts the effects on the unemployment rate, the labor force participation, and the levels of unemployment and …

over this period, but ultimately explains little of the rise in unemployment. Third, only a small share of the increase in … unemployment can be attributed to the early retirement policies that were implemented in Europe from the 1970s up until the early … aiming to explain the European unemployment problem. …

Standard economic theory suggests that individuals know best how to make themselves happy. Thus, policies designed to …

-finding rates and the more standard view of negative effects. When unemployment compensation, if any, is low enough, we argue that … conclusion as well. Looking specifically at unemployment compensation, its optimal level is generally higher than when a lower …