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We extend the Diamond-Mortensen-Pissarides model of equilibrium unemployment to incorporate public-sector employment … unemployment rate, on the division of employment between the private and public sectors, and on the distributions of wages in the …
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I investigate the wage and employment effects of taking up interim jobs after displacement. Proposing a novel approach, I decompose the wage losses along the distribution into a channel due to the take up of interim employment and a channel which accounts for all other factors. I find that being...
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