This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows …. We construct an intertemporal general equilibrium model with search unemployment and endogenous job turnover, and examine … the consequences of introducing an unemployment benefit, a firing cost and a downward wage rigidity. The simulations …

the detrimental effect of individual effort devoted to production in almost all situations. Furthermore, institutions …

first one reflects variations in the quality of institutions and the second encompasses variations in productivity levels …

provide the impetus to establish institutions which seek to enforce property rights. Institutions are shown to implement …