-skilled labor increases. This suppresses wages of low-skilled workers and/or increases their unemployment rates. On the other hand … for the years 1970 - 2004, we document how the volatility of hours worked and of wages of workers at different skill …

consistent with search theory. We apply the technique to eleven countries over various years, and find that incomplete … countries that strongly support unemployment insurance (UI) receive wages closer to their potential, so that doubling UI … decreases incomplete information and results in 5% higher wages. A more dense population reduces search costs leading to less …

undermines the incentive to work hard and forces the public sector to pay higher wages. Thus, the public sector wage premium can …