The paper develops a model of directed search on the job where transitions of workers between unemployment, employment …. Productivity shocks are found to generate large fluctuations in workers' transitions, unemployment and vacancies when matches are …

workers, the creation of jobs, and the wage distribution as functions of unemployment duration. In the model, each worker has … akin to that of discouragement: over the unemployment spell, unemployed workers update their beliefs about their job … longer unemployment spells have lower permanent incomes. Another contribution is to apply lattice-theoretic techniques to …

In this paper we consider learning from search as a mechanism to understand the relationship between unemployment … over unemployment spells. After each period of search, unemployed workers update their beliefs about the market matching … efficiency. We characterize situations where reservation wages decline with unemployment duration. Consequently, the wage …

implies that changes in the unemployment benefit and the minimum wage have no effect on an employed worker's job …

observed large cyclical fluctuations in unemployment and modest responses of unemployment to changes in unemployment insurance … designed to prevent moral hazard has no effect on unemployment. However, the UI system in the United States is neither fully … benefits. As a result, an increase in UI generosity has a positive, but realistically small, effect on unemployment. This paper …

If entitlement to Unemployment Insurance (UI) benefits must be earned with employment, generous UI is an additional … the UI system prevents moral-hazard, the generosity of UI has no effect on unemployment. As with Ricardian Equivalence …-hazard unemployment only makes sense if workers have sufficiently high values of leisure (80 percent of labor productivity in our baseline …