Ahrens, Steffen; Nejati, Nooshin; Pfeiffer, Philipp L. - 2015
search and matching frictions and incorporate a US unemployment insurance experience rating system. Layoff taxes based on … experience rating finance the cost of unemployment benefits and create considerable employment adjustment costs. Our framework … reproduces the negative correlation between vacancies and unemployment, i.e., the Beveridge curve. Simulations show that the …