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

expectations and wages, and a significantly positive relationship between optimistic bias in job finding expectations and … search and matching model of the labor market. Removing the biases could substantially increase wages and expected lifetime …

expectations and wages, and a significantly positive relationship between optimistic bias in job finding expectations and … search and matching model of the labor market. Removing the biases could substantially increase wages and expected lifetime …

work which has examined the association between employee wages and unemployment - the "wage curve". … enter into employment, and unemployment in the local area district. Largely unexplored in the literature this adds to the …

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 …