A displaced worker might rationally prefer to wait through a long spell of unemployment instead of seeking employment … unemployment in the United States can be attributed to wait unemployment …

In this paper we develop a model capturing key features of the Roy model, a search model, compensating differentials … the job match obtained by search frictions varies from around 9% to around 29% depending on how we account for other … features. Compensating differentials and search are both very important for explaining other features of the data such as the …

Why do more educated workers experience lower unemployment rates and lower employment volatility? A closer look at the … this pattern. Using a search and matching model with endogenous separations, we show that investments in match …-specific human capital reduce the outside option of workers, implying less incentives to separate. The model generates unemployment …

little employment protection and low unemployment benefits, while the European model (generous benefits and higher duration … terms of transaction costs, the US pay on average higher search/hiring costs in the labor market, and smaller training costs …