In search and bargaining models, the effect of higher wages on employment is determined by the elasticity of the job … restrictions implied by such models and to evaluate the elasticity of the job creation curve. The main difference between a job … restrictions implied by search and bargaining theory and, using 10-year differences, we estimate the elasticity of the job creation …

response to benefit generosity, suggesting an elasticity of DI participation of 1.26. Additionally, we observe a smaller … employment response, with an estimated elasticity of -0.15. Our findings indicate that the receipt of DI is widely perceived as a …