Krebs, Tom; Scheffel, Martin - 2014
This paper studies the effect of labor market reform on the welfare cost of business cycles. Motivated by the German … labor market reforms of 2003-2005, the so-called Hartz reforms, the paper focuses on two labor market institutions: the …. The paper develops a tractable search model with idiosyncratic labor market risk and risk-averse workers, and derives a …