underlying theory is the search and matching model, with workers and firms engaging in costly search leading to random matching …. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows … from it, generated by matching. …

This paper offers an alternative theory for the increase in unemployment and wage inequality experienced in the United … change increases skilled wages, reduces unskilled wages and increases the unemployment rate of both skilled and unskilled …

others suffer long periods of costly adjustment, typically high and persistent unemployment and temporary output losses. We … unemployment duration spells, relatively large wage penalties when changing jobs and higher likelihood of leaving activity for … and persistent unemployment compared to Estonia during the period of EU enlargement. Traditional labour market …

This Paper considers a matching model of heterogeneous workers and jobs, which includes on-the-job search. High … for the unemployment rates of high and low-educated workers, for the share of mismatched workers and wage inequality both …

and by the need to reallocate workers across productive activities. The duration of unemployment and jobs and wage … policies on wages and unemployment. …

. We sketch the theoretical framework of matching estimators as a substitute for randomization in labor market programs …-in-differences matching estimator of treatment effects. Treatment and control groups are matched over individual observable characteristics …

A new methodology is described which tests between various equilibrium theories of unemployment using matching data … identify a matching process using data which is recorded monthly, and also shows how to identify different unemployment … interpretation of the matching data has important implications for government policy on long term unemployment and optimal UI. It …

mandated unemployment insurance (UI) and employment protection (EP). To illuminate the forces in these models, we study how UI … who suffer involuntary layoffs. Matching and search-island models have labour market frictions and incomplete markets. The … higher layoff taxes suppress frictional unemployment in less turbulent times, prevails in the models with labour market …

little employment protection and low unemployment benefits, while the European model (generous benefits and higher duration …