This paper estimates the causal effect of long-term unemployment on wages. Job search theory implies that if … Unemployment Insurance (UI) extensions do not affect wages conditional on the month of unemployment exit, then reservation wages do … not bind on average. Then, UI extensions affect mean wages only through unemployment durations and are valid instrumental …

Statistical models can help public employment services to identify factors associated with long-term unemployment and …

We integrate social exclusion, operationalized in terms of long-term unemployment, into the theory of optimal …, in conjunction with optimal income taxation, contributes to redistribution and reduced long-term unemployment. The second … marginal cost, whereas public employment and unemployment benefits are underprovided. Our calibration shows how the policy mix …