This paper develops a theory characterizing the effects of fiscal policy on unemployment over the business cycle. The … theory is based on a model of equilibrium unemployment in which jobs are rationed in recessions. Fiscal policy in the form of … government spending on public-sector jobs reduces unemployment, especially during recessions: the fiscal multiplier …

labour market institutions (e.g. unemployment benefits, job security legislation and payroll taxes) have complementary … effects on unemployment; and thus (b) that policies aimed at reforming these institutions are also complementary. These policy …) is unlikely to achieve significant reductions in unemployment. Rather, labour market reform becomes particularly …

We explore the far-reaching implications of replacing current unemployment benefit (UB) systems by an unemployment … balances in these accounts are available to them during periods of unemployment. The government is able to undertake balanced … model for the high unemployment countries of Europe. Our results suggest that this policy reform would significantly change …

We argue that US welfare would rise if unemployment insurance were increased for younger and decreased for older … workers. This is because the young tend to lack the means to smooth consumption during unemployment and want jobs to … accumulate high-return human capital. So unemployment insurance is most valuable to them, while moral hazard is mild. By …

workers, that this presumption is in general misplaced: the impact of severance payments on unemployment is qualitatively … unemployment, depending on the union’s coverage of outsiders’ contracts. This prediction finds empirical support in a panel dataset …

In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment …

an individual employer-worker match is allowed, the impact of severance payments on unemployment duration and incidence …

2008-2009 crisis. This paper discusses the efficiency of this type of policy and investigates its impact on unemployment … unemployment during downturns. All in all, it seems that short-time work programs used in the recent downturn had significant …

In this paper, we study the effects of unemployment benefit duration and the business cycle on unemployment duration …. We construct durations for individuals entering unemployment from a longitudinal sample of Spanish men in 1987 …–94. Estimated discrete hazard models indicate that receipt of unemployment benefits significantly reduces the hazard of leaving …

spirit of Blanchard and Summers (1988), the model can generate multiple equilibria, with a low-quits/high-unemployment … equilibrium coexisting with a high-quits/low-unemployment equilibrium. Under weak conditions, low-unemployment equilibria Pareto … dominate high-unemployment equilibria. Mobility premia improve aggregate welfare but may increase unemployment. …