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 …

The paper presents a stochastic insider-outsider model that accounts for the following stylized facts: (1) unemployment … rates display a high degree of serial correlation, or `persistence'; (2) the average rate of unemployment has been higher in … long-run unemployment rate is independent of the level of productivity and the magnitude of the labour force. The model …

We develop a simple model of short- and long-term unemployment to study how labour market institutions interact with … labour market conditions and personal characteristics of the unemployed. We analyze how the decision to exit unemployment and …, taxes, unemployment insurance benefits and welfare assistance. We extend our analysis by allowing for time …

This paper surveys the use of search and matching models in macroeconomics. It outlines the standard model, discusses …

This paper considers a matching model with heterogeneous jobs (unskilled and skilled) and workers (low- and high …

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 presents a theory explaining the labor market matching process through microeconomic incentives. There are … quit decisions. This approach obviates the need for a matching function. On this theoretical basis, we argue that the … matching function is vulnerable to the Lucas critique. Our calibrated model for the U.S. economy can account for important …

of EPL varying among workers of different skills on the level and composition of unemployment, job flows, productivity …

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 …

-Pissarides version of the search and matching equilibrium framework. Qualitative analytical results show that wage and employment … reduces unemployment duration but increases incidence with an ambiguous effect on overall employment. A firing tax has the … offsets the distortions on the job destruction margin induced by unemployment compensation and employment protection policy …